RajeshTemecula
Level 2

If an LLC member does not pay back the 'negative capital account balance' , ie of $2,000,000; is this taxable income to the departing member of the LLC? 

I understand that the Partners share of liabilities would be considered as part of the 'taxable income'. 

I just see that negative capital account amount needs to be paid back...but what if it's not?

Thanks. 

 

 

0 Cheers