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Old 11-15-2014, 10:29 PM
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Smile LLC Not claiming a loss

I use a Delaware LLC to protect the name of a small social group which has chosen not to be tax-qualified but to prevent others form using the name for business purposes, the name has some prestige attached to it. IRS says that a single-member LLC classified as a disregarded entity, i.e. not elected to be treated as a corporation, must use the owners 's SSN an report on his federal income tax return. the LLC had a small loss last year., funds were down $3900 but I don't want to claim a loss to lower my personal taxes due to the nature of the organization. Is there way to do this, can the "at risk" line on Form 6198, lines 20 and 21, be used to lower or eliminate the loss? any other ideas? tks kar



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Old 11-16-2014, 03:44 PM
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IRS says that a single-member LLC classified as a disregarded entity, i.e. not elected to be treated as a corporation, must use the owners 's SSN an report on his federal income tax return.===è>>>>>not really; you can use either your ssn or ein.You, as an SMLLC owner, can not open your biz merchant account with out your EIN. Apparently the IRS is trying to deal with smLLCs who have been refused bank accounts unless they obtain their own EINs. Frankly, all it does is speed up the rate at which available EINs are being used up.





the LLC had a small loss last year., funds were down $3900 but I don't want to claim a loss to lower my personal taxes due to the nature of the organization. Is there way to do this,=======è>>asyou can see, as your business has more expenses than income during its tax year, then you may have a net operating loss . This loss can be used to offset income in other years.since you have a nol from your smllc, you'll normally be able to deduct the loss from your total income from other business ventures or from any salary, wages, or other earnings. As the business loss exceeds your total income for the year, any unused portion of the loss can be used to offset income and reduce taxes in another year. You should use Sch A of Form 1045 to determine whether your loss is a nol. Although the form is used to apply for a refund based on the carryback of the NOL, you should use it to compute the NOL regardless of how you chose to carryover it over. If the loss it carried back, it is used to offset the taxable income of previous 2 years, with the earliest year offset first. If the loss is not fully used up in the carry back years, any unused portion of the loss may be carried forward for up to 20 years after the NOL year. Any NOL that is not used up in the carryover period is lost.





can the "at risk" line on Form 6198, lines 20 and 21, be used to lower or eliminate the loss? any other ideas?==è>>>>>>> Based upon the facts you gave , it does not sound like Form 6198, At-risk limitations would be needed, unless for some reason you are not at-risk for the real estate debt. If you are responsible for paying the real estate debt, then you should be at-risk. It is important to file Form 8582, however, if you have incurred losses on your rental property if you have. This is to substantiate and claim any passive loss carryovers either when you have income from the rental property or when you sell the property.



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