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    Suman1983's Avatar
    Suman1983 Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Jun 25, 2008, 11:30 AM
    Setting off Capital Loss by LLP
    Dear All -

    I am planning to set up an LLP in the US wherein our main business would be stock trading. I would like to know the tax treatment of the capital losses in the hands of LLP and the members of LLP?

    Thanks in Advance.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jun 25, 2008, 12:04 PM
    What is LLP?
    A business can be proprietorship, partnership or corporation. So what type of entity are you planning?
    Suman1983's Avatar
    Suman1983 Posts: 9, Reputation: 1
    New Member
    		  
    #3

    Jun 25, 2008, 12:40 PM
    Thanks for your quick response. LLP, I mean here is Limited Liability Partnership with two or more members.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 26, 2008, 08:34 AM
    ANY partnership, be it a normal partnership or one that uses the Limited Liability Company provisions, is a pass-through entity, in that the partnership itself pays NO income taxes. The expenses and profits "pass-through" the partnership to the individual partners, who pay the taxes on the profits after expenses are factored in.

    Even though no taxes are paid, the partnership DOES have to file an income tax return using Form 1065. This return is VERY complex, which means you will need to get professional tax help to file it.

    You need to hire either an enrolled agent or some type of tax professional who has experience in filing partnership returns.
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