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Stephen G.
Stephen G., Sr Income Tax Expert
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I am part of a LLC that has three members with percents of

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I am part of a LLC that has three members with percents of 70,15,15 Ihave 15% these are the %'s that are filed with the state, however last year all three memebers voted on and passed that those percents are used for voting purposes only. We all agreed that any money and property would be split evenly at 33.33%, in 2009 we purchased some property and had $150,000.00 in expenses, my question is can I claim 33.33% on my taxes or do I have to claim only 15%.
Submitted: 7 years ago.
Category: Tax
Expert:  Stephen G. replied 7 years ago.

Hi & thanks for using our service. I'll do my best to give you a complete & accurate

answer. Please ask me to clarify anything you don't understand.


The partnership profit & loss percentage does not have to agree to the partnership ownership percentages.


That's about all I can say; I have no idea what your operations consist of, whether the $150,000. is currently deductible, and even more important, do you have sufficient tax basis in your partnership interest to absorb the loss?


For example, let's say you started the partnership with 200K (30K, 30K, 140K).


Now you get an allocation from the partnership return on your form K-1 of an ordinary loss of 50K. How much can you deduct? $30K, ie. to extent of your investment in the partnership; that is a simplified example; other transactions can enter into the computations; but basically that's way beyond the scope of this forum.


Oh, and if you're operating as an S-Corp all this applies the same exact way.



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Edited by Stephen E. Grizey, CPA on 4/1/2010 at 11:02 PM EST
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