Have a Tax Question? Ask a Tax Expert
No, what you have written does not sound correct. While you can start an LLC Management Company, the income from the LLC cannot be claimed as capital gains income. SEE BELOW:
DEFINITION of 'Capital Gain'
1. An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price.
2. Profit that results when the price of a security held by a mutual fund rises above its purchase price and the security is sold (realized gain). If the security continues to be held, the gain is unrealized. A capital loss would occur when the opposite takes place.
Additional information that you might find beneficial:
Let me know if you require further assistance with this matter.