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Financial Planning / Tax Strategies
|Subject: LLC tax loss carryforward||Date: 9/23/1999 6:00 PM|
|Author: honeydog||Number: 19098 of 122904|
5 years spent in commercial land developement with all passthru income retained as capital. Sold all assets in 1998 with big operating loss but either LLC, or I, can buyback a commercial lot much cheaper then market value in future. My only partner is nonresident alien and 90% of 1998 loss allocated me which gives me a large negative capital account figure on my K-1. I will have future large passive, pass thru income from another S corp owning long held, fully depreciated apartments. Questions:
1. If LLC dissolved without adding more capital to buyback commercia developed lot, will I be taxed on my negaive capital gain in yr of dissolution?
2. If answer to 1. is yes, should LLC stay alive,I add capital to buyback lot,then LLC makes large profit when asset later sold. Have paid FICA on earned income from LLC in past. Would the LLC future sale, over 1 yr, of said commercial lot trigger earned income with FICA tax liability, or could it be capital gain?
3. Will have large capital gain on involuntary sale (highway widening)of undeveloped land in a 2nd LLC, with (I understand)3 yrs to reinvest in like-kind property to defer tax. Could purchase of the said 'DEVELOPED LOT' for first LLC be this 'like kind' propert?
4. For depreciated apts, IRS approved C Corp conversion to S Corp starting 1/1/98. I understand that future profit on any apt sale will trigger old C Corp tax liability for 10 yrs after conversion. Is this tru?.
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