Sold Share in LLC, Received Redemption

Forum|Forum|6 years ago
March 11, 2020
1 reply
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I sold all my share (around 10%) of my previous LLC and left the Company in 2018. In return, the Company paid me $30,000 as the "Redemption Amount" in 2019 in the span of 10 months ($3,000 each payment).

According the the redemption agreement, "... The parties have described the Vested Interest as "shares" in the Company. Because the Company is a Limited Liability Company, and because its Operating Agreement does not refer to Membership or a Membership Interest as "shares," the parties affirm that in describing the Vested Interest as "shares" the parties mean my portion of the profits and losses in the Company and right to receive distribution of the Company's assets."

I wonder where I can report this income. Thank you!

TurboTax Self Employed Online

D

DavidD66

You can enter this under the Stocks, Mutual Funds, Bonds, Other area of Income & Expenses. While logged in to your return:

Click on Federall >> Income & Expenses >> Stocks, Mutual Funds, Bonds, Other
Click on Start or Edit/Add
If you already have investment sales, click Add Sales, otherwise answer Yes
Answer No to "Did or will you receive a 1099-B form or brokerage statement for these sales?"
Enter the name of the person or financial institution that brokered this sale
Select "Other" for investment type
Enter the details of your sale. (Do not report as "employee stock")

It can also be entered through the K-1 entry process, if you received a K-1. There should be a question about Disposition of a portion of your interest in the company. Then you will be asked to provide information about the sale.

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