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Returning Member
posted Jan 25, 2025 2:28:12 PM

Sale of LLC

How do I report the sale of an LLC of which I owned a 5%. During probate a value was placed on it 12 years ago at the time of my mother's death and it has now sold. Is there a stepped up value and how do I report?

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1 Replies
Expert Alumni
Jan 26, 2025 2:16:07 PM

When you sell an LLC interest that you inherited, you typically benefit from a "step-up" in basis, meaning the value of your LLC interest is adjusted to its fair market value (FMV) at the time of your mother's death. Here’s how to report the sale:

 

  1. Determine the Stepped-Up Basis: The stepped-up basis is the FMV of your 5% LLC interest at the time of your mother’s death, established during probate. This value becomes your adjusted cost basis.
  2. Calculate Your Capital Gain or Loss: Subtract the stepped-up basis from the sale price of your 5% interest to calculate your capital gain or loss
  3. Report the Sale on Your Tax Return: 
    1. Log into TurboTax:
      Open your return in TurboTax Premier or Self-Employed, as these versions support investment and business income reporting.
    2. Go to the Income Section:
    3. Scroll down and click on add Income
    4. Then search Investment Income" and select "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other."
    5. Go back to Income and click Investment Income
    6. Then select enter a different way
    7. Enter Information and add sales."
    8. Select "Other Sale" to report the sale of your 5% LLC interest and Enter Sale Details:
  4. Continue through the questions.

 

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