Just to be clear, are you saying if the adjusted basis if only $400k and market value is $450k, you contribute to the LLC at $400k? This seems counter intuitive because usually the IRS would want to tax a $50k capital gain at the personal level. Could you please elaborate a bit more on this?
Also, once the property is contributed to the LLC and I personally rent from the LLC and issue market rental payments to the LLC, the LLC could then depreciate and charge other normal rental costs to the LLC’s income statement, correct?
Thanks very much!
