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It depends. If the LLC is only in your wife's name (sole-proprietorship, disregarded entity), the sale would be reported as if it were a sale of a rental home. However, your question sounds like she is part of a multi-member LLC. In this case the sale must be entered into the entity's return (whether form 1120-S, 1120, 1065 or 1041). This is the case regardless of the 1099-S being issued in your wife's name. If the property belongs to the entity, the entity must report the sale and then report the distribution of proceeds to each member of the LLC on Schedule K-1.
If it does get reported on the personal return (wife is the only member of the LLC), follow the instructions in this FAQ below. Otherwise, it will be reported on an entity return first and passed-through to each member (partner or shareholder): https://ttlc.intuit.com/replies/3302480
It depends. If the LLC is only in your wife's name (sole-proprietorship, disregarded entity), the sale would be reported as if it were a sale of a rental home. However, your question sounds like she is part of a multi-member LLC. In this case the sale must be entered into the entity's return (whether form 1120-S, 1120, 1065 or 1041). This is the case regardless of the 1099-S being issued in your wife's name. If the property belongs to the entity, the entity must report the sale and then report the distribution of proceeds to each member of the LLC on Schedule K-1.
If it does get reported on the personal return (wife is the only member of the LLC), follow the instructions in this FAQ below. Otherwise, it will be reported on an entity return first and passed-through to each member (partner or shareholder): https://ttlc.intuit.com/replies/3302480
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