As explained on Page 5-28 of TheTaxBook, gains on sale of livestock due to drought can be postponed under involuntary conversion rules.
My question is whether this election would have to be made at the LLC level or could each LLC member make the election separately based on his share of the gain as reported on his K-1.?
I am preparing the LLC tax return and the personal returns of one LLC member. In his case, due to other expenses, losses, etc., he would be better off NOT electing to postpone the gain. In the event the other 50% owner wants to postpone his share, I would like to know if each LLC member is able to decide to make different choices.
I would appreciate any comments, answers or suggestions.
My question is whether this election would have to be made at the LLC level or could each LLC member make the election separately based on his share of the gain as reported on his K-1.?
I am preparing the LLC tax return and the personal returns of one LLC member. In his case, due to other expenses, losses, etc., he would be better off NOT electing to postpone the gain. In the event the other 50% owner wants to postpone his share, I would like to know if each LLC member is able to decide to make different choices.
I would appreciate any comments, answers or suggestions.
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