AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Hi, Several years ago my wife and I transfered our home (where we reside) into an LLC. There was little consideration given for the transfer. Now the LLC is going to sell the home.
What are the tax ramifactions for selling the home? How do we determine the basis?
Can we transfer the home back to our name before the sale without tax consequences?
Answer Ben,
Thanks for your question.
Your basis is your original cost plus the cost of any capital improvements such as adding a room.
To exclude the gain you must have owned and lived in the house for 24 of the past 60 months as your main home. Since you have not owned the home (in fact) you appear to not meet the qualification. You can transfer the title back to your names, but would need to live in it for 24 months.
Having said that, however, you have a situation I have never encountered and the IRS to my knowledge has no ruling on it. Since you own the LLC 100% you could be characterized as the beneficial owners and take the exclusion. To make this determination would require some research and possible interaction with the IRS.
