Discussion:LLC - Capital lease basis?

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Discussion Forum Index --> Tax Questions --> LLC - Capital lease basis?

MSTguy (talk|edits) said:

9 August 2006
This could be a stupid question. If an LLC leases equipment that is being treated as a capital lease so that a liability is being recorded on the LLC's books, do the members of the LLC get an increase in basis for their allocative share of the capital lease obligations?

WesR (talk|edits) said:

10 August 2006
Hi yes you would get "basis" but since they are probably not personally liable for the repayment they are nor "at risk" so therefore it is just cosmetic. If LLC members have personally gauranteed the lease then you have "at risk" as well. bye

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