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Long Term gain / no 1099 or K-1 issued

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    Long Term gain / no 1099 or K-1 issued

    Client was part of (partner?) an LLC formed by group of investors. LLC never filed any returns with the IRS.

    LLC purchased 1 share of local brewery / pub in 2002. Brewery bought out 1 share of the LLC in 2011.

    My clients received 2 checks for $2600 (one for each spouse) along with a note from the lady "in charge" of the LLC. Note said that all us (per the accountant) should record our LT gains on Sch D as an investment in the Brewery as the LLC has never filed a return with the IRS.

    No K-1 or 1099 issued. Any suggestions as to how to report? I did ask the clients for the date of investment as well as their cost basis and am waiting for that info.

    #2
    Form 8949 Box C

    If that's all they have to go on, then Form 8949 Box C long term is probably the best you can do.

    Although, do I understand correctly that the brewery bought back it's share of brewery stock from the LLC? It sounded as if the brewery bought a share of the LLC, which would be a different thing to report depending on whether or not the LLC liquidated.

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      #3
      thank for the reply. I did see that box on 8949 after posting.

      Comment


        #4
        1099s are to go out by 2/15 K-1's 3/15...don't be too quick to file until the TP has checked with whomever does the tax return to find out whether either will be going out. The K-1 is a return issue but the 1099 isn't. Whomever the accountant is should be issuing at least the 1099 if the company isn't filing it's returns.
        Believe nothing you have not personally researched and verified.

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          #5
          Originally posted by taxea View Post
          1099s are to go out by 2/15 K-1's 3/15...don't be too quick to file until the TP has checked with whomever does the tax return to find out whether either will be going out. The K-1 is a return issue but the 1099 isn't. Whomever the accountant is should be issuing at least the 1099 if the company isn't filing it's returns.
          There is no requirement that K-1s be issued by 3/15. If the LLC elected to be treated as a corp, the corp return would be due by 3/15. But, if the corp goes on extension, the K-1 would not be issued until 9/15. However, the OP states this is a partnership. Therefore, that return is due 4/15(17). But it may decide to go on extension. So, the K-1 would have until 9/15 to be sent.
          You have the right to remain silent. Anything you say will be misquoted, then used against you.

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