How do LLC capital investments get taxed when I pull them back out?
For example, say I start up a new LLC with a partner. I put in $ 100,000 as a capital investment to the LLC. This is money I have already paid taxes on as income in previous years.
If I desolve the LLC in a few years, or decide the LLC does not need this capital lying around in liquid form anymore, how do I pull it out? Am I taxed on it again?
Thanks.
Investment best answer:
Answer by a tax lady
You would track your basis against what you took out. If you get back more money it's capital gain. See the basis tracking information in the k-1 instructions.
Investment
MONUMENT TO INVESTMENT BANKING.Cabot Square, e14
Image by sludgegulper
I think the taxpayer needs a monument here too.
The inscriptio reads MICHAEL von CLEMM 1935 - 1997
Investment Banker and Pioneer of the Euromarkets whose vision helped to created this financial centre. Von Clemm was a chairman of Credit Suisse First Boston whose HQ is close by. His wikiedia page points to astronomical expenses claims.
Sculptor - Gerald Laing, 1998. Unveiled by "Steady" Eddie George, Governor of the Bank of England.
Orignal From: How do LLC capital investments get taxed when I pull them back out? and MONUMENT TO INVESTMENT BANKING.Cabot Square, e14
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