My client received non-qualified stock options. They were granted in 2013, and exercised a little over a year later, in 2014. In the documents my client received, the exercise price and number of shares are spelled out.
My client purchased a home in her personal name. The client plans to rent the home during the summer as she has a personal residence. The client intends in moving this property into an LLC. If the client decides to convert the home back to a personal residence, does it matter that it is in an LLC for Section 121 capital gain exclusion purposes?
My client has a condo with a basis of $250,000 and an accumulated depreciation of $45,000 as of 2014. It was reported as a rental property on Schedule E of Form 1040. However, as of the beginning of 2015, the condo was placed into service as an asset owned by a multi-member LLC. The deed associated with the property was refiled. My questions are as follows:
My client is a joint filer and would like to sell their home which also has a rental property attached to it. How would we determine the personal & rental property capital gain associated with the sale?
We’ve reviewed several portions of the tax code including the Foreign Investment in Real Property Tax Act (FIRPTA) again. It is our understanding that your client’s non-resident alien Italian mother would in fact be subject to withholding and taxes on the sale even though this is a personal residence.