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Deductions & credits
No, transferring the building to an LLC did not avoid capital gains on the sale. Sorry.
If the building was transferred into the trust when your father died then what you "paid" for it - your basis - is the value the building had on the day your father died. So when you sold it any amount over that value is a profit and is taxed as capital gains. Any amount under that value is a loss and will be deductible on your taxes each year of the installment sale.
Are you using TurboTax for your form 6252? Because the system will ask a series of questions and then do the form for you using the information that you provide. Doing it by hand is going to be a lot.
But get started and come back here with your questions.
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‎February 25, 2025
11:00 AM