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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10830
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Stock transfer-I had an Idaho LLC which I own with my wife.

Customer Question

Stock transfer-I had an Idaho LLC which I own with my wife. I worked for a company, which paid me with stock, and they issued the 1099 to my company, and put the stock certificate in my company’s name. I was asked to close the company when my wife and I were getting financing on our new home. I now need to transfer the stock to my name; would I have a tax consequence sine the stock was not sold and no gain or loss was recorded on the sale?
Submitted: 3 months ago.
Category: Tax
Expert:  Lane replied 3 months ago.

Hi. My name's Lane. I can help you with this one.

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First, the LLC (with two owners) is treated as a partnership, unless either S-Corp or C-Corp taxation was elected.

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SO all you really have here is a distribution of property from the partnership.

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Had this been a single member LLC, (a disregarded entity for tax purposes) this would not be a taxable event ... You would have established basis in the shares as they were taxed to you.

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Here, it may be a little different, procedurally, but the substance may be the same... Was the income from this passed through to you on the 1065's K-1?

Customer: replied 3 months ago.
I'm sorry it's a k-1 and it's a S-Corp not a LLC? So, is it a distribution on my K-1? can I gift it to myself?
Expert:  Lane replied 3 months ago.

It's just a distribution on the K-1.(line 19)

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and only taxable if you don;t have that much basis in the partnership (say you had been taking losses or other distributions)

Expert:  Lane replied 3 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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But if you need more on this, please let me know.

Lane

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