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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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Will I have to pay income tax on a withdrawn CD if I re-invest

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Will I have to pay income tax on a withdrawn CD if I re-invest it in an LLC? BILL , Saluda, SC

Hello and thank you for using Just Answer.

The interest you earn on the Cd will need to be included in your income for the year you receive the interest.

If you invest in an LLC with the interest earned you will still be required to report any interest earned from the CD.

I sincerely XXXXX XXXXX information is useful,

Customer: replied 7 years ago.
This was a gifted CD, if we cash it and use it to invest in an LLC, will the amount be taxable with the state and Feds?
Yes, the interest you earned while will be taxable to you for federal and state purposes.
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