LLC - Spidell


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This topic contains 2 replies, has 1 voice, and was last updated by Anonymous 2 months, 2 weeks ago.

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  • #170713

    Taxpayer and father are limited partners in an LLC that owns real estate. real estate had mortgage of $ 2 million  and they refinance an extra $3 million so now the total mortgage is $ 5 million. They took the extra 3 million refinanced and put it into their bank accounts. Both taxpayer and dad have Qualified Non Recourse Debt basis is of $1.7 million each and an ending capital account of $ 1.1 million each. Is the $1.5 million they each put into their bank account taxable? Does qualified Non recourse debt count as basis?

    Would taxable capital gain be the $1.5 million deposit less $1.1 million basis ? Or is it not taxable beacuse they added to their basis?

  • #170725

    I’m not sure you have given enough information to provide an answer to all your questions, but generally qualified nonrecourse debt is included in a partner’s basis.

  • #170736

    what extra info do you need?