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Old 04-11-2010, 08:59 PM
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Capital gain on inherited property

I inherited a 1/11th interest in real estate. The heirs formed an LLC and the real estate was subsequently sold. I received a K-1 showing the capital gain on the sale. I believe my cost basis in the real estate was the 1/11th of the value on the date it was inherited. Where do I record my cost basis to reduce the LLC gain?



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Old 04-11-2010, 10:20 PM
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Any capital gain or loss calculations for this transaction is reported by the LLC, who in turn will issue you a K-1 that reports your share of the capital gains! Thus, the total reported to you no the K-1 reflects your distributive share of the capital gain on the sale of the inherited property, (that is 1/11th share of the overall capital gain).

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