Discussion:Allocation of Income LLC

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Discussion Forum Index --> Accounting Questions --> Allocation of Income LLC

TALCOTT (talk|edits) said:

6 April 2009
LLC taxed as Ptnrshp, 2 Members. Member A takes final distribution of cash, and finals out of LLC on 6/16/08. Normally a 50/50 on taxing of profits. Do I allocate 50% of profit on 6/16 or is the overall year profit allocated by % of days a member during full year.

Also, do I have to attach an allocation of income statement showing my calculation on the 1065? And, with ending capital for member A, having to be zero, is a statement necessary regarding the breakdown for showing the amounts needed to zero capital? After the years profits & distributions, ending Capital A/C for final member A, would be about 6500. Does the 6500 need to be line itemed the same way as cash distribution do on line item 19(a)?

Thanks,

Kevinh5 (talk|edits) said:

6 April 2009
You will end the taxation as partnership as of 06/16/08 and allocate 50/50 unless they have agreed otherwise. Hopefully their accounting is such that this can be easily done. The LLC income and expenses after that date will go on the remaining member's Sch C.

Kevinh5 (talk|edits) said:

6 April 2009
oh, and the 1065 is late.

TALCOTT (talk|edits) said:

6 April 2009
Kevin, amending return is where I'm at today original was on time?. Answer to second part of my original paragraph still looming.

And then so I take it the return was due 3 1/2 months after 6/16 ??


New qstn comes to mind: if familiar with CA. Change now would cause there to be single member, if single member is now considered "disregarded entity" would CA 568 form cutoff on 6/16 and show as final or would remainder of year be apart of it?

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