capital gains question - Posted by John

Posted by JHyre in Ohio on July 02, 2003 at 18:39:50:

The IRS ignores both the trust and the (non-corporate) single-member LLC, so you’d get the cap gains rate. The transfer to the trust is a non-event for federal income tax purposes, so there’s no recapture.

John Hyre

capital gains question - Posted by John

Posted by John on June 30, 2003 at 13:38:38:

I have a property that was in my name for a little over a year, thus qualifying me for long term capital gains. I have started using land trusts now and have deeded it to a trust with an LLC as beneficiary. It is a single member so it flows through to my personal return. If i sell the property now that it is in a trust, do i get the long term gains since the property is now owned by the trust for only a few months? Also do i have to treat the transfer of title to a land trust as a sale and recapture the depretiation for the 13 months it was in my name? Thanks! Great site!