Tax Law (Questions About Taxes)/Sale of LLC interest


My husband and I sold our interests in the LLC, of which we were majority owners in August 2015.  I am trying to finalize our taxes for 2015, but I have not received any paperwork from the LLC (K-1 or otherwise).  I have requested when we might expect them, but the CPA (who is now the majority owner of the LLC, and with whom we did not leave on good terms) has told me that he is swamped.

I am wondering - what forms should I expect to receive? And is there a deadline for when I should receive them? And if I don't receive them before April 15, will I be responsible for the interest on any taxes that we should have paid due to the business?

In the past, the LLC filed as a partnership.  I don't have access to any of the company's finances, so I don't have any information other than what we originally put into the company and what we received at the time of the sale.  

I appreciate your expertise and information!


Thanks for your question.

The only form you should receive from the LLC is a K-1. It is due when the return is due, April 18. However, it is not uncommon for partnerships to file for an extension, so you may not see the K-1 until September.

If you do not pay the entire amount of your tax liability by April 18, you will owe interest on the unpaid amount, in addition to possible penalties.

You will also report the gain or loss on the sale, but this should be determined from your own records. The partnership maintains what is referred to as inside basis, but that is not necessarily the same as your outside basis. Outside basis the the amount you use to determine gain or loss by subtracting it from the proceeds of the sale. Outside basis is your original cost plus your share of the profits over the years minus any distributions you took from the business over the years.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2017 All rights reserved.

[an error occurred while processing this directive]