RajeshTemecula
Level 2
05-05-2023
12:56 PM
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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.