@mjlresources wrote:For the period of August thru December (beneficiary LLC tax return) rental income is recorded on Sch E, yes?
Yes, assuming the LLC was a single-member LLC in which case it is disregarded for federal income tax purposes.
@mjlresources wrote:Given that the rental business property was sold at a loss would this loss be picked up on 4797 AND considered ordinary Loss (which could be carried forward assuming it is greater than AGI), yes?
Yes. If indeed there was a net loss on the sale, the loss would be entered on Form 4797 and could generate an NOL.
@mjlresources wrote:Would the basis be on the date of the death of the grantor or when the beneficiary LLC assumed ownership?
The beneficiary (LLC) would take the trust's adjusted basis. The trust's initial basis would be the FMV on the date of death of the grantor.
