Jacksonville, FL asked in Tax Law for Florida

Q: Apart from the initial investment in Sunset LLC, does Danube Inc report any of of Sunset's balance sheet items?

Florida: Sunset LLC has one member; a corporation Danube Inc. Danube Inc. has 2 members: a husband and wife. There is an operating agreement between Sunset LLC and Danube Inc.

All taxable income are earned by Sunset LLC only. All fixed assets are owned by Sunset LLC. All expenses including payroll are incurred by Sunset LLC.

Currently, Danube does not manage or own any other entities.

For tax purposes, Sunset LLC is a disregarded entity and therefore its income and expenses will flow through Danube, Inc. (Required to file 1120 for Danube Inc)

Question: FOR TAXATION PURPOSES ONLY

Apart from the initial investment in Sunset LLC, does Danube Inc report any of Sunset LLC’s balance sheet items on its own Balance sheet when completing form 1120? What about depreciation expenses of Sunset LLC’s fixed assets, does this flow through Danube’s P & L ?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer

A: Hire a professional.

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