Capital Gain After Deed Into The LLC
We owned an investment property for one year and we are planning to deed it to the LLC we formed this year. Would this affect the capital gain tax? I mean, if we sell the property now, with the LLC owning the property for less than one year, will the capital gain tax be the maximum instead of 15%?
Define "we".
Who owns the LLC? Is it a disregarded entity and are the owners the same after the transfer?
No, if the limited liability company (LLC) is a disregarded entity. The LLC would be a disregarded entity if you are the sole member of the LLC, or if the sole members are a husband and wife who live in a community property state and file a joint income tax return. If it is a disregarded entity, then you can transfer the property into the LLC with absolutely no affect to you basis in the property.
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