Home Page link  

Weather related sale of livestock -Involuntary Conversion.

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Weather related sale of livestock -Involuntary Conversion. taxxcpa 02-09-2007
Posted by taxxcpa on February 9, 2007, 12:49 am
Please log in for more thread options
 Under Section 451(e) of the IRC gains on sale of livestock
due to drought can be postponed under involuntary conversion
rules.

My question is whether this election would have to be made
at the LLC level or could each LLC member make the election
separately based on his share of the gain as reported on his
K-1.?

I am preparing the LLC tax return and the personal returns
of one LLC member. In his case, due to other expenses,
losses, etc., he would be better off NOT electing to
postpone the gain. In the event the other 50% owner wants to
postpone his share, I would like to know if each LLC member
is able to decide to make different choices.

I would appreciate any comments, answers or suggestions.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Shyster1040 on February 10, 2007, 7:03 am
Please log in for more thread options
 The election must be made by the partnership. See Code Sec.
703(b), which provides that all elections affecting the
computation of taxable income derived from a partnership are
made by the partnership except the following elections:
1) under Sec. 108(b)(5) or 108(c)(3);
2) under Sec. 617; or
3) under Sec. 901.

The elections listed in 1) - 3) are made by each partner
separately.

Since an election under Sec. 451(e) is not on that list, it
must be made by the partnership.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by taxxcpa on February 14, 2007, 10:21 pm
Please log in for more thread options
Shyster1040 wrote:

> The election must be made by the partnership. See Code Sec.
> 703(b), which provides that all elections affecting the
> computation of taxable income derived from a partnership are
> made by the partnership except the following elections:
> 1) under Sec. 108(b)(5) or 108(c)(3);
> 2) under Sec. 617; or
> 3) under Sec. 901.
>
> The elections listed in 1) - 3) are made by each partner
> separately.
>
> Since an election under Sec. 451(e) is not on that list, it
> must be made by the partnership.

Thanks. Your answer was clear and explicit and completely
answers my question.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on February 10, 2007, 7:03 am
Please log in for more thread options
taxxcpa wrote:

> Under Section 451(e) of the IRC gains on sale of livestock
> due to drought can be postponed under involuntary conversion
> rules.
>
> My question is whether this election would have to be made
> at the LLC level or could each LLC member make the election
> separately based on his share of the gain as reported on his
> K-1.?
>
> I am preparing the LLC tax return and the personal returns
> of one LLC member. In his case, due to other expenses,
> losses, etc., he would be better off NOT electing to
> postpone the gain. In the event the other 50% owner wants to
> postpone his share, I would like to know if each LLC member
> is able to decide to make different choices.

I have not looked it up for you, given this time of the
year, but my gut feeling is that this is like section 179
election, to be made at entity level.

What say others?

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Dependent 1099 Misc Income from Livestock Sale April 8, 2008, 6:24 pm
C corp sale of depreciated assets to related S corp December 20, 2006, 1:07 am
non related dependent March 16, 2008, 12:44 am
Estate related questions March 4, 2007, 9:09 pm
Katrina related questions April 15, 2007, 1:23 pm
Employee Leasing and related questions. March 30, 2007, 3:56 am
Help With Taxes - Medical Expences Related - Which forms? February 5, 2007, 8:22 pm
Question related to S Corporation, HSA Account, and Pre-tax contribution May 10, 2007, 11:54 pm
Penalty for trust distributions by "related or subordinate" trustees September 9, 2007, 10:09 pm
roth IRA conversion yes or no? December 20, 2006, 1:26 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap