Jump to content
ATX Community

Buying stocks under SMLLC


Max W

Recommended Posts

Client has a business under a CA SMLLC.  Last year he started buying/selling stocks under same LLC.  Since the LLC was set up for business and not for investment purposes, does anyone know how this could play out?

I am concerned that he lose cap gains treatment.

Link to comment
Share on other sites

I have several clients who have SMLLCs for their rental real estate holdings.

Since the SMLLCS are disregarded entities for tax purposes, everything is reported on Schedule E.

Your client's situation is really no different except that the transactions will be reported on Schedule B, D and Form 8949.

  • Like 3
Link to comment
Share on other sites

On 6/11/2019 at 11:15 AM, cbslee said:

I have several clients who have SMLLCs for their rental real estate holdings.

Since the SMLLCS are disregarded entities for tax purposes, everything is reported on Schedule E.

Your client's situation is really no different except that the transactions will be reported on Schedule B, D and Form 8949.

 

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...