All Forum Posts by: Norman Scott Duncan

Thank you again Naseer Khan.......all this has been extremely helpful.

Naseer Khan.....thank you again for the explanation.  

   When you say that short term capital gains are treated as ordinary income, I assume you are saying that those gains are taxed the same as if they were ordinary income.   Correct?

If the gains in the LLC were to be classified as short term (for whatever reason), would I still be able to negate some of those gains with the short and long term losses I'm carrying over from previous years tax returns?

Thank you Naseer Khan for explaining that........two other questions: Even though we've owned the house for 10 years before putting it into the LLC, did we lose our long term capital gain status when we put it in the LLC? (it is a partnership LLC by the way)

In other words, if we sell the house within 12 months of putting it in the LLC, will it be Long Term or Short Term Capital Gains? If Short Term, I have read that these pass through as ordinary income instead of short term capital gains --- is that true?

Three family members have owned a house for 10 years - always occupied by a family member. This year we placed it in a LLC (Limited Liability Company) in order to rent it for about 3 months of the year. Now we have decided to sell it. The question is: since there will be significant capital gains, will these gains flow to our individual returns? Or does the LLC have to pay the capital gains and the remainder flows to us. There is nothing else in the LLC except this house. Any info will be appreciated.