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.

1 Answer 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.

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