How do you get the bottom line when an LLC has a small investment in another LLC which has an investment in the first LLC. The partnership investment percentage is about 3%. If you have to do a simultaneous equation I do not think that should be part of a tax practice.??!!!
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Cash basis or accrual basis? -
Accrual but
I do not think that makes a difference. 2006 K-1 is picked up on the return no matter if you are cash or accrual.Comment
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I don't think it is that complicated. The first LLC would give the second LLC a K-1 which would be part of the second LLC's income and they would give the third LLC a K-1 based on LLC # 3's percent of LLC # 2. You would not need to multiply percentages or calculate the indirect interest in LLC # 1.Originally posted by JON View PostComment
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LLC #1 OWNs
a percentage of LLC #2 and LLC #2 owns a percentage of LLC #1. Which one gives the first K-1???Comment
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