Talk:Limited Liability Company

From TaxAlmanac

I have a client who received a K-1 from his LLC who has entered a net loss on line 1. This net loss is comprised of income & losses derived form the trading of personal property for its own account. The break out is that of interest income, dividend income, section 988 loss, loss from underlying investments, loss on trade/business expenses & loss on trade/business interest expense. My question is this....the supplemental information states this is considered non-passive to the limited partners and that the investment income or expenses qualify for form 4952. Since line 1 is an overall loss can I still use the interest income reported on line 1 in the calculations of figuring an investment interest deduction for schedule A??? Additionally, on line 16, code G, they have an amount for interest expense. The supplemental notes state this qualifies for form 4952 as well. Can it be used as a investment interest expense paid for this form??? Any assistance in getting this clarified would be great.