TLightsy
Returning Member

Rental property sold for profit in 2022 - Capital gains exemption

I sold a rental property this year for a profit of over $50,000.  To avoid penalty from the IRS, I thought I could set up a 2-member LLC and use the profit through this in the form of donations, purchase and sales,etc.  Will that work as one way to avoid penalties?

Also, what is a one-time capital gains income tax exemption? Would this help me?

Thank you.