Question

Investment in an LLC

Forum|Forum|3 years ago
November 16, 2022
1 reply
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I have less than a 5 % in a LLC for less than a year. One of the partners is proposing to buy my percentage befoere this year end. I will make some capital gain. How this capital gain is reported and taxed? should I wait to receive a K-1 eventhough I wont hold any percentage before the year ends?

R

R-SchuleCPA

Since the investment has been held less than a year, then gain would be short term (ordinary tax rates). A good idea would be to ask the buyer to include the sale on your partnership interest on your final K1, which would calculate gain on your behalf.

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