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Personal taxes of partners of LLC
Asked by:
Richard Harden — 6 February, 2013
Is an LLC required to give partners an IRS Form for losses yearly? How do LLC partners treat Company loses on their personal income taxes?
Answered by:
admin — 6 February, 2013
Richard,
An LLC does offer a number of benefits, but is not necessary in order to file a federal partnership return. Profits and losses in a partnership flow through to the individual partners and are reported on Schedule E on the individual 1040 returns. There are a number of factors that will potentially affect the deduction of losses by partners and I would suggest you consult with a tax professional to determine what partnership losses can be deducted by the partners.
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