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Old 11-14-2017, 06:19 AM
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How stocks purchased from the profits from LLC would be taxed?

Hi
I would like to know that if my LLC made for example a profit of $100000 and I invested $ 50000 in stocks, how that would be taxed? Will there be any exemptions on it?



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Old 11-15-2017, 08:21 AM
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I would like to know that if my LLC made for example a profit of $100000 and I invested $ 50000 in stocks, how that would be taxed? ======>It depends; if your LLC is a SMLLC, then, A smllc is taxed as a sole proprietorship. So your CG needs to be reported on your 1040 line 13;if your LLC is a MMLLC, a partnership, then, The MMLC, partnership, itself does not pay taxes directly to the IRS; the individual partners pay tax based on their share of ownership in the partnership. LLC taxes are pass-through taxes. That is, the taxes of the business are passed through to the owners (members), to be included on the individual income tax return. The percentage of net income for the LLC is divided among the members according to their distributive share. The partnership files an information return with the IRS on Form 1065. Then a Schedule K-1 is prepared for each partner, showing the share of the profit/loss of the partnership.Capital gains tax is an income tax on gains made from various investments, including LLCs. If LLC owners choose to be taxed as a partnership, I mean as MMLLC, then, they will have to pay taxes for the profits they make from the company. However, they are allowed to use the same exemptions as they would use for other investments, which can lessen the tax burden considerably. If they choose to be taxed as a corp, they will essentially have to pay the capital gains taxes twice. Each state has a different way of classifying LLC's for state income tax purposes. Most states use the federal IRS classification, but they usually modify the tax rate or charge a flat rate.so for your state level taxes you need to contact dept of revenue of your home state for more info in detail.

Will there be any exemptions on it?========>as mentioned above.



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