Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-10-2016, 05:17 PM
Junior Member
 
Join Date: Sep 2013
Posts: 11
Capital gains due to buyout

We (I and my wife) formed a LLC 4 years back to start a successful business.
However before the business could take off, our partners cheated us and forced us to a buyout.
Though the buyout resulted in some capital gain for us, we have suffered mentally and physically the last 4 years.

Now, on top of this, we would be hit with taxes on the capital gain.
Is there a way to reduce the capital gain by claiming deductions for the work we did while in the business - something like sweat equity?

The payout was in several installments (spread over 2 years), if that would make any difference.
Thanks in advance



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-10-2016, 10:04 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Quote:
Originally Posted by pcg2011 View Post
We (I and my wife) formed a LLC 4 years back to start a successful business.
However before the business could take off, our partners cheated us and forced us to a buyout.
Though the buyout resulted in some capital gain for us, we have suffered mentally and physically the last 4 years.

Now, on top of this, we would be hit with taxes on the capital gain.
Is there a way to reduce the capital gain by claiming deductions for the work we did while in the business - something like sweat equity?

The payout was in several installments (spread over 2 years), if that would make any difference.
Thanks in advance
sorry I do not think so; as Partners of unincorporated independent firms who wish coverage , you need compensation coverage; Failure to do so results in the rejection of the claim.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital Gain buyout two22 Capital Gains 0 03-29-2015 07:09 PM
Capital Gains. I think. Joshua Capital Gains 1 02-21-2015 01:32 AM
CRP Buyout Mac1 Income 0 11-07-2013 07:50 PM
Taxation of buyout in an LLC pcg2011 Limited Liability Company 0 10-10-2013 07:18 PM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning