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Losses carried forward/back for an LLC

I was wondering on the rules for losses for a multi-investor LLC.  Can the losses be carried forward and back like a traditional corp?  Been my whole career with corps so this is a little new to me.  Any info is appreciated.


Topic Expert
Joseph Ori
Title: CEO
Company: Paramount Capital Corporation
(CEO, Paramount Capital Corporation) |

No. An LLC is a pass through entity like a pship and the losses flow through to the members and they will determine usage of the loss.

Neil Brown
Title: CFO & CIO
Company: KatalystFP
(CFO & CIO, KatalystFP) |

Thanks, that is what I thought bought I needed a 3rd party to confirm in order for someone to believe me. :)

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

Partnership losses flow through to partners for use on their tax returns. Amount and nature of losses that may be used by partners may be limited. Three different loss limitations apply. Only losses that make it through all three limits are deductible by a partner. Please check the code for Section 704(d) - Basis in partnership interest; Section 465 - At-risk limitation; and Section 469 - Passive loss limitation.
Limitations are applied successively to amounts which are deductible at all prior levels.

Sorry - never easy.


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