On an LLC. Can you write off a member removing investment as an expense? I thought it was classified as a loan.

Forum|Forum|2 years ago
February 25, 2024
2 replies
0 views

On an LLC. Can you write off a member removing investment as an expense? I thought it was classified as a loan.

Should be able to lower my taxes using this.

TurboTax Online

MinhT1

No. In an LLC, you can't remove a member by writing off his investment as an expense. If the investment was a loan to the LLC, it's owed to the member and must be repaid. and not written off as an expense to lower your taxes.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Mike9241

does he owe the LLC the loan or is it the other way around? if he owes the LLC money that won't be repaid then you may be able to treat this as a distribution to the member. These are certain reporting requirements for property distributions. in addition, if he is the only other member, terminating his interest terminates the partnership since there can't be a one -member/partner partnership, Consult a tax pro for how to proceed.