I am a 50% partner in an LLC which has 2 pieces of property. My
partner contributed one of these pieces of property. We now want my
partner to distribute the property out of the LLC and deed it to me
personally. We understand if we do this before the 7-year period is
up, she will have to pay cpaital gains. Our question is this: what is
the effective starting date of the 7 years? In our situation, the LLC
was formed 1/1/1998 with the said property deeded into the LLC on that
date. However, a corrective quit claim deed was done 11/24/1998 (for a
reason we cannot remember)and this deed is shown as recorded on
11/24/98, as well as the original quit claim deed on 1/1/98. Can we
distribute the property to me on 1/1/2005 and avoid taxation or are we
going to have to wait until 11/24/2005?