I agree with @Anonymous_ and will add a few more comments:
- This may just be semantics in your wording, but you note "you sold it" and "did a proper [Section] 1031". Just want to make sure there was an intermediary involved and you didn't really sell it or take any possession of cash.
- Essentially the LLC will "step into the shoes" of the property for tax purposes.
- On your personal tax return, you will just enter the applicable items to make sure there is zero gain or loss.
- Your current adjusted basis, depreciation, etc. will just carry over; the step into the shoes impact.
- Additionally, when this type of a contribution takes place, you need to look at the difference between the adjusted basis and FMV at the date of contribution. Section 704(c) technically comes into play here, but if the LLC is only you and your wife, and are filing joint, not sure you would need to go down that road.
- Make sure you check any withholding requirements for the LLC as a result of nonresident members. This will be an issue should the LLC generate income.
- Make sure you are registered to do business in OK.
- Yes, your LLC will file it's own tax return, you will receive K-1's, and those will be entered into TT.
- And I will just confirm, you will be best served with getting help with the LLC accounting to make sure this starts out correctly.
*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.
