Livermore, CA asked in Business Law and Tax Law for California

Q: If i invest 20k in a company LLC partnership Sub S Filing and and i enjoy 60 % interest in said company.

The Company suffers a 100K loss and my share means 60k loss is past to me... would I be affecting my personal AGI by 20k or 60k? If I had 50k actual income would my AGI tax liability be zero 0 or would it be 30k??? Thank you for this service and your input.

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1 Lawyer Answer
Zaher Fallahi
Zaher Fallahi
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: You should consult a tax attorney to advise you on the LLC being taxed as an S corporation with the LLC terms and potential legal peril of an S Corp having two types of stock. Generally, your loss is limited to your basis. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

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