A COUPLE IS SOLE OWER OF A C CORPORATION AND DECIDED TO FORM A LLC OF WHICH THEY PURCHASED REAL PROPERTY. THE PAYMENT5
ON THE L0ANS WERE PAID THROUGH THE LLC THUS CAUSING A LOSS FOR 2007 AND 2008. IN JULY OF 2008 THEY DISSDOLVED THE LLC WITH
APPROX $31000. LOSSES. SINCE THE LLC WAS DISSOLVED CAN THESE LOSSES BE TAKEN ON THEIR FORM 1040. THE COUPLES INCOME EXCEEDS
THE MODIFIED $150,000.
I do not understand the C corp reference, since it has no effect unless the LLC is owned by the c corp.
Other than that, when the LLC was dissolved, was the real estate sold or otherwise disposed of? So the LLC real estate, (a rental?), had a loss which would pass through to the owners(both of them, since they eached owned a piece). I assume the LLC filed a 1065.
The losses in 2007 were probably suspended since their income was so high, but in the year of the sale of the property all losses can be utilized.
Please unlock the CAPS button.
