My wife put property into an LLC upon its formation. Shortly after she gifted some of her shares to her children. TurboTax asks me to choose the type of disposition the shares. The choices are:
" - Sold Partnership Interest
- Abandoned Partnership interest
- Liquidated Partnership interest
- Owner died and interest was Transferred
Note: If you are not sure, answer Sold Partnership interest."
When I choose Sold Partnership interest, then the next questions ask for the basis and for the sale price. If I indicate zero for the sales price, a short-term capital loss is generated. Should I use the cost basis for the sale price to get a null transaction? Should I do something else?