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Are the LLC's losses generated from an NJ LLC deductible on the individual shareholders tax return, assuming there is sufficient basis to claim these losses?
New Jersey State does not conform with the Federal tax return when it comes to reporting the K-1 losses from LLC's or S Corporations. As such, according to New Jersey State Tax, "if the net amount from all Schedule NJK-1's is zero or less" no deduction for any losses are allowed on the Form NJ 1040."
Thus, these losses are not deductible on the NJ 1040 tax return, but taxpayers can offset the losses of K-1's from one or more LLC's with gains from other K-1's.
AGI: 98,000
Qualified Dividends from IBM Stock: 3000
Interest Expense associated with purchase of IMB stock: 1000
The question is: Will the taxpayer receive preferential 15% capital gains tax rate on the entire 3000 or on 3000-1000=1000?
Thank you!
The question is: Will the taxpayer receive preferential 15% capital gains tax rate on the entire 3000 or on 3000-1000=1000?”
--->On the whole $3,000, the qualified dividends from IBM stock; Qualified dividends shown in box 1b of the Form 1099-DIV you receive are the ordinary dividends subject to the same 0% or 15% maximum tax rate that applies to net capital gain. You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. You need to file Qualified Dividends and Capital Gain Tax Worksheet on Sch D andeport iton 1040 lineyou’re your investment expense, $1,000, is deductible as miscellaneous itemized deductions on Schedule A of your tax return. When your investment portfolio includes both taxable and tax-exempt securities, you can deduct only those expenses that are related to the taxable securities.
