Getting inherited properties out of an LLC while minimizing taxes
My sister and I inherited free and clear rental properties that are held in an LLC. We are starting down the path of distributing the properties, and we are concerned about the tax consequences of dividing up the properties. Specifically, how best can we minimize or alleviate capital gains on the properties as they exit the entity?
Keeping the entity intact and co-owning the entity is not an option. We do not see eye-to-eye.
We can pay taxes now and then depreciate the properties (again), but we are hoping to find a better option.
TIA,
Sam