LLC and Taxes

E

Engine99

What's wrong with this assumption.

You start a single owner LLC (investment LLC) in 2008.
You do an owner contribution of e.g. 20k.
You open a trading account for the LLC and trade.
You blow 10k within 2 month
You close the LLC still in 2008.

Income/Losses are passed through to your personal tax return.

Can you deduct the 10k losses of your LLC contribution immediately (2008 tax return), and therefore avoid the 3k/year limitation you'd have as an individual investor?

If not, why not?
Is there any place you can find more info about this?



Thanks.
 
Ha, those guys are good. I was at a prop daytrading firm in 02 brought over my K-1, he insisted that I show my trade log of all transactions. I said u mean all 2 billion trades?

Quote from mrbluelegs:

Call H&R Block.
More...
 
You can if you have capital gains to offset the 10k losses against. Otherwise, u are limited to 3k off ordinary income.

McGreedy, CPA 1989-1994

Quote from Engine99:

What's wrong with this assumption.

You start a single owner LLC (investment LLC) in 2008.
You do an owner contribution of e.g. 20k.
You open a trading account for the LLC and trade.
You blow 10k within 2 month
You close the LLC still in 2008.

Income/Losses are passed through to your personal tax return.

Can you deduct the 10k losses of your LLC contribution immediately (2008 tax return), and therefore avoid the 3k/year limitation you'd have as an individual investor?

If not, why not?
Is there any place you can find more info about this?



Thanks.
More...
 
That assumes all your income is from trading. ie if you're into real estate and/or have a salary, you can't mark to market.

Quote from jd7419:

Mark to market election allows you to go over $3000 I believe. Irs rules on daytraders discusses this.
More...
 
Quote from mrbluelegs:

Call H&R Block.
More...

I assume this is a sarcasm. They have like 20 hours training. They know jack sh1t about tax. They were taught how to use their program to do tax. That's about it. I know, I was there before.
 
Best advice is to ask some friends for a good tax accountant or someone they trust that does taxes.

There are many little shops that have VERY GOOD people doing taxes. I use a little independant tax preparer company that has two old, ex-IRS agents doing taxes. Believe me, with what they charge and all the extra deductions I've gotten through the years from them, it's worth paying a little more for the service.

I used to do it all myself, but it ain't worth the hassle.
 
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