To respond to your questions:
- The liquidating distribution is just your sales proceeds on the termination of the LLC. This is what you show as your selling price in TT.
- The $$ used to make the liquidating distributions to the member's was made up of a combination of any cash on hand and the sales proceeds that the LLC received on the sale of the building.
- Without understand exactly what tangible property was in the rental (if any) I can't say whether there is any Section 751 recharacterization. At this point, you have to go with what the K-1 reflects. That's all you have to go on.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
