1

Suppose I am the sole owner of a Wyoming LLC. I own some property or stock which has an unrealized gain and which I have held for over 1 year and deposit this into the LLC.

Now let's say 3 months later I happen to sell this property or stock and incur a capital gain. Will this still be a long term gain or will it be short term because the LLC has only held it for 3 months?

Also, if you can please refer me to some law which shows this that would be great.

Thank you.

Improve this question

1 Answer 1

Reset to default
1

The concept here is "non-recognition", which means for tax purposes suggests changes. Upon liquidation you would personally have long term capital gains tax.

There are various legal journals (publications on law firm's websites) regarding non-recognition of assets assigned to an LLC. Perhaps one offers the specific information about holding period.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .