SE tax on COD for LLC
is cancellation of debt income subject to self employment tax on an LLC for the managing mem
ber?
1
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bmbV1crz0r3QVhacfA8pyY
05/20/09 5:21pm PDT
Viewed by asker 01/10/11 9:35am PST
Viewed by asker 01/10/11 9:35am PST
1 Reply
sjrcpa
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05/26/09 5:08pm PDT
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It probably could be. When payments were made on the debt, did the interest reduce SE income? Was the debt incurred for operating expenses or depreciable property , the deductions for which reduced SE income? If yes, I think the COD income would be SE income, too.
The more I know, the more I don't know.
