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Old 08-01-2014, 10:21 AM
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Join Date: Aug 2014
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Selling a Business (15% owner)

I have my own LLC that invested in a parent (partnership) LLC in Ohio. The parent LLC is a restaurant/bar. I now currently live in NY. We are selling our share (our % ownership was 15%). Sale price is 675k for the 15%. The cost basis was 375k and the profit will be 300k.

Main Question 1:
Is this a pass-through to my personal taxes and added to my total income or is it treated as capital gains tax?
Capital gain 300k x 15%? - I read depends on what it is - equipment etc vs receivables and goodwill.
Or 300k plus my income and then refer to the chart - I am married and have filed jointly the last several years. For example: Married Filing Jointly and Surviving Spouses: Over 405,100 but not over $457,600 - The tax is $109,587.50 plus 35% of the excess over 405,100.

Question 2:

State taxes? Who do I owe in this situation? Ohio company selling while I live in NY State. Both Ohio and NY or just one of them?

Question 3:

Reinvesting in another business - Is it possible to 1031 exchange the restaurant profit into other real estate?

Question 4:

When are taxes due? I read "persons selling their business must file a final return, with payment, within 10 days of the sale." Using the multi-purpose combined excise tax return if you do not have a current tax return.

I would like to properly avoid as much tax as possible.

Thank you for your help.



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