Contact UsWe sold our interests in the LLC, of which we were majority owners in August 2015. I am trying to finalize our taxes for 2015, but I have not received any paperwork from the LLC (K-1 or otherwise).
I am wondering - what forms should I expect to receive? And is there a deadline for when I should receive them? And if I don't receive them before April 15, will I be responsible for the interest on any taxes that we should have paid due to the business?
In the past, the LLC filed as a partnership. I don't have access to any of the company's finances, so I don't have any information other than what we originally put into the company and what we received at the time of the sale.
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Tax Professional Answers
John Stancil
The only form you should receive from the LLC is a K-1. It is due when the return is due, April 18. However, it is not uncommon for partnerships to file for an extension, so you may not see the K-1 until September.
If you do not pay the entire amount of your tax liability by April 18, you will owe interest on the unpaid amount, in addition to possible penalties.
You will also report the gain or loss on the sale, but this should be determined from your own records. The partnership maintains what is referred to as inside basis, but that is not necessarily the same as your outside basis. Outside basis is the amount you use to determine gain or loss by subtracting it from the proceeds of the sale. Outside basis is your original cost plus your share of the profits over the years minus any distributions you took from the business over the years.
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424 weeks ago
If you do not pay the entire amount of your tax liability by April 18, you will owe interest on the unpaid amount, in addition to possible penalties.
You will also report the gain or loss on the sale, but this should be determined from your own records. The partnership maintains what is referred to as inside basis, but that is not necessarily the same as your outside basis. Outside basis is the amount you use to determine gain or loss by subtracting it from the proceeds of the sale. Outside basis is your original cost plus your share of the profits over the years minus any distributions you took from the business over the years.