buying an LLC, looking for advice

[Will Kirkendoll]

hey Bp, I have a question looking to get help with it.

I'm looking to buy an LLC that holds title to a piece of real estate. when the llc bought the property it was quit claim deeded for "0.00" If I buy the llc lets just say for 60k and sell it for 90k will I be taxed on 90k since the llc acquired the property for "0.00"?

[Kory Reynolds]

No. You'll be taxed on the $30k gain. If you buy 100% of an LLC interest, in simple terms it is an asset sale, and the basis in the underlying assets will be stepped up to your purchase price. If you are buying a piece of this LLC, assuming the accountant doing the partnership return knows what they are doing, there will be a step up in basis allocated to you as well.