LOSS ON DISOLUTION OF LLC RENTAL PROP
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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.
Answer
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.
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