interesting tax issue

[Pat L.]

Multimember LLC have taken back a property deed in lieu of.

LLC Issued a cancellation of debt for $40,000.

Loss can only carry fwd within the LLC, but members can pass the loss back to previous very profitable years reducing the loss to $15,000.

Do they pass back the loss & leave a smaller CFD loss on the books requiring past return amendments.

2 members also want to relinquish 'membership' allowing all members to allow dissolution of the LLC & lose the CFD loss

OR do the 2 remaining members continue with LLC & effectively use the CFD losses for future profitable deals.

Suggestions??? Ideas???