Are both the buyer and seller LLC a multi-member LLC? What's the structure of each? Maybe for tax purposes, only one or neither is an LLC, but an S-Corp or C-Corp?
I ask for clarification, because a single-member LLC reports income/expenses on SCH C, while rental property owned by a single member LLC is *NOT* reported on the SCH C. It's reported on SCH E with *no* exceptions. Am I also correct in assuming this is residential rental real estate, and not business rental real estate?
Was the sale recorded as such in county records? Or did you do the wrong thing by reporting it as a sale on taxes, while it was just a transfer of ownership on the county property records?
