Taxation of buyout in an LLC
I am being bought out by my partner. We have been in the construction phase for the last 2 years. The business hasn't opened yet and so no income has been
As part of the proposed buyout 50% is being paid now and the remaining 50% spread over 2 years. In this scenario how is this treated in a LLC tax return?
1. Are all these return of capital - some this year and the rest spread over in 2 years?
2. If there's an interest component, how is this treated?
Thanks in advance!