You have an investment in an LLC and should have been maintaining a tax basis schedule of your investment.
Since you are telling TT that you no longer have this investment, TT is wanting to know you tax basis information along with the date of liquidation.
Based on the limited information:
- Your selling price is the liquidating distribution you received from the LLC
- Your cost is your tax basis in the LLC
- In summary, TT is NOT asking about the sale of the rental property as that was handled at the LLC level and is reported on the K-1. TT is asking about your investment in the LLC to determine an overall gain or loss on this investment.
*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.
