Hello,
I have a client who has had a rental for the past several years in an LLC, always operated at a loss. They have now sold the asset for a gain of 57k from the k1 showing on 4797. Their initial outside basis in the business was about 95k. Based on the small distributions and losses over the years their remaining outside basis is about 73k.
There are no other properties in the LLC, the LLC has not been officially closed yet, can I apply the Remaining basis on schedule D to offset the 57k gain, or does that have to wait until the LLC is closed?
thank you
Bob
I have a client who has had a rental for the past several years in an LLC, always operated at a loss. They have now sold the asset for a gain of 57k from the k1 showing on 4797. Their initial outside basis in the business was about 95k. Based on the small distributions and losses over the years their remaining outside basis is about 73k.
There are no other properties in the LLC, the LLC has not been officially closed yet, can I apply the Remaining basis on schedule D to offset the 57k gain, or does that have to wait until the LLC is closed?
thank you
Bob