John Hyre, ihave a tax question... - Posted by David Krulac

Posted by JHyre in Ohio on February 21, 2002 at 12:59:48:

I tend to agree on both counts. Interestingly, a home in a SMLLC should not lose the exemption, but getting a state judge to limit the liability on your personal residence (e.g.- respect the LLC and not pierce the veil) might be an uphill battle.

In re death step-up: The basis of the entity interest (e.g.- corporate stock or interests in an LLC) does get stepped up, the assets do not in a corporation… though the assets MIGHT get a step-up in a multimember LLC IF a so-called “Section 754 election” is in place- I’ve not researched the issue in that context, but the argument is definitely there.

John Hyre

John Hyre, ihave a tax question… - Posted by David Krulac

Posted by David Krulac on February 20, 2002 at 18:06:49:


On the main board somebody posted that if your personal residence is in a corp(and presumably also an LLC) that you would lose your $500,000 personal residence capital gains excemption.

And that assets in corp form (presume also LLC) lose the steped up basis if transferred through inheritance.

Are they correct interpetations of the IRC? Thanks.

David Krulac