LLC Money Out

[rfk]

I do not have all the facts, but I have these facts and question.

1. Potential client had LLC for properties. Not sure what type of LLC.
2. It appears that there is only cash sitting in LLC now.
3. Clients wants to know whether gifting or other better arrangement for setting up Charitable Remainder Trust (CRT) is best to avoid any capital gains tax?

So in summary, client wants to take cash out of LLC sitting in there now to put in Charitable Remainder Trust to possibly avoid capital gains. Or what is the best way to avoid capital gains to put cash money out of LLC into CRT?

Thank you.

rfk

[Burke]

The answer really depends on what type of LLC it was. Disregarded entity? Partners? or taxed as Corp? See past tax returns. If it was for "properties" was it for rentals? Real estate bought and sold? Appears no activity at present from what you say. But does it still own property? Was LLC terminated with the state? Liquidation rules will apply. Lots of answers needed here. Appreciated property can be contributed to a CRT and the charity sells it with no cap gains tax. But not before you determine tax status of entity. And whether the cash is non-taxable or taxable as ord income, salary, or cap gains depends on how that cash got there and what taxes the LLC paid, if any.

[rfk]

Thanks, Burke

Burke,

I am in the midst of finding this info out. However, I did need another opinion on where I was at and where I need to go with this. Once I get the info, I will post more questions.

Thanks, again

rfk