Capital gains due to buyout

pcg2011 · #1 (**permalink**) 03-10-2016, 05:17 PM

We (I and my wife) formed a LLC 4 years back to start a successful business.
However before the business could take off, our partners cheated us and forced us to a buyout.
Though the buyout resulted in some capital gain for us, we have suffered mentally and physically the last 4 years.

Now, on top of this, we would be hit with taxes on the capital gain.
Is there a way to reduce the capital gain by claiming deductions for the work we did while in the business - something like sweat equity?

The payout was in several installments (spread over 2 years), if that would make any difference.
Thanks in advance

Wnhough · #2 (**permalink**) 03-10-2016, 10:04 PM

Quote:

Originally Posted by pcg2011

We (I and my wife) formed a LLC 4 years back to start a successful business.
However before the business could take off, our partners cheated us and forced us to a buyout.
Though the buyout resulted in some capital gain for us, we have suffered mentally and physically the last 4 years.

Now, on top of this, we would be hit with taxes on the capital gain.
Is there a way to reduce the capital gain by claiming deductions for the work we did while in the business - something like sweat equity?

The payout was in several installments (spread over 2 years), if that would make any difference.
Thanks in advance

sorry I do not think so; as Partners of unincorporated independent firms who wish coverage , you need compensation coverage; Failure to do so results in the rejection of the claim.