Just confirming, as I am having such difficulty in obtaining info from client and 3rd parties (as in attorneys, financial groups, etc involved)
Taxpayer received a 5% ownership of his Employer Company late 2016 for a "buy-in of $ 8,500. It is a LLC - client is Limited Partner - non-passive -Basis should show in 2017 as the LLC is distributing as a "gross up" of funds paid and will record on the 2017 books - LLC did not record the $ 8,500 as capital contribution in 2016 as all was completed right at end of year 12/29-/12/31/2016 - All seems to be a "timing issue"
K-1 shows $ 158 loss and no basis for year 2016.
As there is no basis - the $ 158 loss is disallowed for year 2016 -
Is this correct?
Thanks
Sandy
Taxpayer received a 5% ownership of his Employer Company late 2016 for a "buy-in of $ 8,500. It is a LLC - client is Limited Partner - non-passive -Basis should show in 2017 as the LLC is distributing as a "gross up" of funds paid and will record on the 2017 books - LLC did not record the $ 8,500 as capital contribution in 2016 as all was completed right at end of year 12/29-/12/31/2016 - All seems to be a "timing issue"
K-1 shows $ 158 loss and no basis for year 2016.
As there is no basis - the $ 158 loss is disallowed for year 2016 -
Is this correct?
Thanks
Sandy