Capital Withdrawl From An LLC
I have been investing money steadily over the last year into my LLC to meet ongoing cashflow issues with an apartment complex. I ended up selling the complex in May at a gain and now have significant funds in the LLC which I believe would be better suited in other investments at this time. My question is....what are the tax consequences if any of making a $25k withdrawl from my LLC checking account to my personal acct? Thanks.
If your LLC is a single member entity, then the income is taxable on your personal 1040 anyway, no matter whether you withdraw it or leave it in your LLC checking account.
This LLC has 4 members. I realize that the LLC income is taxable. In this year, we will show a loss even with the gain on sale of the apt. I am asking specifically about a capital distribution. Just as I invested 45k into the business this year, I am now looking to take 25k out. This is not classified as income, is it?
Thanks for your reply.
I STRONGLY urge you to hire a CPA or enrolled agent to assist with this. Capital accounts are generally different for book and tax purposes.