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LLC Member sold membership unit interest (Form 1120-S). Where do I report the amount paid on the Former member's Schedule K1 S?
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Did he sell it back to the LLC/S Corp?
Or to someone else?
Can you do a footnote on a K-1 in ProSeries?
The selling member reports the sale on their 1040.
The more I know the more I don’t know.
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Member 1 and Member 2 purchased the shares but used the LLC Funds.
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"but used the LLC Funds."
Because there's nothing like realizing they used part of that other partner's own equity, to buy out the partner.
Don't yell at us; we're volunteers
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The LLC made monthly payments to the former member from the business checking.
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Then how did the other 2 members buy the former member's interest?
The more I know the more I don’t know.
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The current LLC members used LLC funds to buy out the former member's interest and want to absorb the interest bought. So the new interest percentage for the current LLC members would now be 50% each. This is where I'm confused.
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I'm confused, too. How is "The current LLC members used LLC funds" this being classified by the LLC? Distributions? Loan? Guaranteed Payments?
Is there a sale agreement?
The more I know the more I don’t know.
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So the LLC redeemed Owner 3's share?
