capital gains on gifted vacation home My siblings and I formed a LLC when our parents gifted the family cottage to us. We worked with an attorney to ensure the amounts per member was below the exposure limit for taxes. We recently sold the cottage and as part of the closing a 1099S was filed. My question is around how the IRS will be able to link the fact that this entity was originally gifted to us so we will not be expected to pay capital gains taxes on the proceeds. It should be noted that the closing was naturally done in the name of the LLC (vs. each individual). |