Camas Lilly
Recycles dryer sheets
- Joined
- Sep 18, 2007
- Messages
- 318
No. Your inheritance was 1/3 of the $50K house that was originally handed over to the LLC; so ~$17K. That's the only part of the money that's tax free now. Everything else is an increase in value that happened after you inherited the house, so it's taxable.
So yes, you are going to owe long term capital gains tax on $208K-$17K=$191K. Some of that might fall in your 0% bracket, but obviously most of it is going to be in the 15% bracket. There might also be a small amount (less than $17K) of ordinary income in there if the LLC depreciated the buildings while it owned them, and that would be taxed at your marginal rate of 12% instead of 15%, but you won't know the exact numbers until you get your K-1 next year.
Ahh. That is what I needed to know. So whether or not I am a little above the cap gains minimum, is really going to be irrelevant. I do, however plan on having someone do my taxes this next time.