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Discussion Forum Index --> Tax Questions --> Sale of LLC mid-year
Jpmansur (talk|edits) said:
| 28 June 2007
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| Husband-Wife LLC sells 100% LLC interest to another couple in Sept of the first year LLC formed (December year end). How do I handle the tax return--it is my understanding that the LLC remains with "simply" a change of members. But how do you allocate the income? Do I report the full year and allocate or can two partial year returns be filed? Or am I complete off base? Help! Thanks!
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Sandysea (talk|edits) said:
| 28 June 2007
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| Was this a partnership, or a corporation for tax purposes?
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JAD (talk|edits) said:
| 28 June 2007
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| Assuming partnership, sale of more than 50% interest (or is it 50% or more?) is a technical termination. 1065 is due based upon the September year-end and a second short-period return is due based upon the December year-end. Certain disclosures have to be made - a statement re the technical termination of the entity and Form 8308 re the sale of a partnership interest.
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Jpmansur (talk|edits) said:
| 30 June 2007
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| Partnership for tax purposes--thanks for the help!
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ThinkTax (talk|edits) said:
| 30 June 2007
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| Also keep in mind that the partnership that was "technically terminated" under ยง 708(b)(1)(B) had January 15 filing deadline.
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