Siblings’ tax targets in sale of inherited residence differ

Ilyce Glink and Samuel J. Tamkin

Q: I hope you may reply this query for me. We have now consulted three attorneys and two accountants, and nobody agrees on the reply.

My brother, sister and I personal a house with virtually seven acres of land. We inherited it from our father. We shaped a restricted legal responsibility firm (LLC) to handle the rental of the home. We are actually getting ready to promote the property, and the contract is being reviewed by the client.

Two of us wish to take the cash and the opposite individual desires to do a 1031 trade. Can we all three need to agree on this half? Additionally, how can we calculate the capital beneficial properties tax that we’d owe? We have now been supplied $2 million for the property.

A: You’ve consulted with 5 professionals and nonetheless haven’t obtained the reply you’ve been on the lookout for? OK, we’ll give it a shot.