Taxable LLC Distribution

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Topic Author
LakeNormanRob
Posts: 1
Joined: Fri Mar 17, 2023 2:39 pm

Taxable LLC Distribution

Post by LakeNormanRob »

Wife's family formed an LLC years ago for a commercial property rental. Her mother is 51% owner but has made generous distributions to the children over the years so that now the wife's capital account is negative on her K-1. Is the excess distribution to be reported as a capital gain?
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