Legal Question in Tax Law in Ohio

Limited Liability Co.

I currently have accumulated losses from my residential rental properties and I am carrying a loss carry forward on my Tax returns as a sole proprietor (schedule C). I would like to form a LLC. but am concerned with what might happen to my schedule C loss carry forward. If I were to become an LLC could I bring my loss carry forward with me, if not would I be able to go back to a sole proprietor some time in the future and claim the losses at that time.


Asked on 4/20/09, 9:34 am

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Limited Liability Co.

If you have a single member LLC it can be treated as a "disregarded entity" for federal tax purposes. That means you would continue to file a Sechedule C and you would be able to use your losses. However, please be aware some State tax laws may restrict this at a state or locat level.

I hope this helps!

Ron Cappuccio

http://www.TaxEsq.com

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Answered on 4/20/09, 10:41 am


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