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Level 2
June 6, 2019
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My wife and I own rental property that we put into a LLC. What basis do we use in the LLc, and do we need to pay an gain on the FMV vs. tax basis of the property?

  • June 6, 2019
  • 1 reply
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Best answer by Rick19744

The basis of the property contributed is the adjusted basis for you and your wife.  Holding period includes your holding period and you need to continue with the same depreciation method and life.

No gain on contribution under Section 721.

1 reply

Rick19744
Level 13
Rick19744Level 13Answer
Level 13
June 6, 2019

The basis of the property contributed is the adjusted basis for you and your wife.  Holding period includes your holding period and you need to continue with the same depreciation method and life.

No gain on contribution under Section 721.

*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.