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selling interest in a property LLC

Forum|Forum|5 years ago
November 24, 2020
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I am selling my interest in an LLC which holds a vacation property and has 15 members. What forms will need to be completed, and what TurboTax version will be needed to file in April 2021? I have used TurboTax Deluxe and Premier, but don't know if they can cover this.

Best answer by M-MTax

Might be too much this year and you should see a tax pro if uncertain.....but you should be able to use TT Premier and the forms include 4797, 8949, and SCH D plus you should have a K1

M-MTaxAnswer

Might be too much this year and you should see a tax pro if uncertain.....but you should be able to use TT Premier and the forms include 4797, 8949, and SCH D plus you should have a K1

E

ehbreunerAuthor

Thank you very much for your guidance. and yes, I will have my final K-1.

A

Anonymous

when you sell your interest gain or loss is measured by the difference between your selling price and your adjusted basis. The gain would be capital except for any portion attributable to section 751 - see further on. It would be long term or short term depending on how long you've held the interest. there is no depreciation recapture. however, the partnership is required to notify you if any part of the gain is under IRC section 751 which requires you to recognize ordinary income for unrealized receivables and inventory (a real estate venture probably does have these items).