Buying stocks under SMLLC

[Max W]

Client has a business under a CA SMLLC.  Last year he started buying/selling stocks under same LLC.  Since the LLC was set up for business and not for investment purposes, does anyone know how this could play out?

I am concerned that he lose cap gains treatment.

[Bart]

How has the SMLLC elected to be taxed?

[Max W]

Sole proprietor.

[Lee B]

I have several clients who have SMLLCs for their rental real estate holdings.

Since the SMLLCS are disregarded entities for tax purposes, everything is reported on Schedule E.

Your client's situation is really no different except that the transactions will be reported on Schedule B, D and Form 8949.

[Max W]

On 6/11/2019 at 11:15 AM, cbslee said:

I have several clients who have SMLLCs for their rental real estate holdings.

Since the SMLLCS are disregarded entities for tax purposes, everything is reported on Schedule E.

Your client's situation is really no different except that the transactions will be reported on Schedule B, D and Form 8949.