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What is the capital gains basis for sale of a land through an LLC?

I inherited part of a farm and am contemplating creating an LLC (along with the other owners) for the land. When we sell the enitre property, what will be my basis for the capital gains... the value of the property when I inherited it, the value of the property when it was placed in the LLC, or the amount the LLC "purchased" the deed from me?

Public Comments

1. The value at the time you inherited it. Exactly what legal purpose do you hope to accomplish by putting together an LLC? It won't save you any taxes. In fact, the hassle of filing another tax return will cost you money.
2. Normally it would be the value when you inherited the property. However, you mention you sold the property to the LLC. If you sold it to the LLC for more than your basis, and you recognize the gain on your tax return, the basis for the LLC would be the purchase price. If you sold it for less than your basis, you have a related party loss which will not be recognized and the LLC's basis is the value when you inherited it. I strongly recommend that you speak to a local professional before proceeding. Doing this in an LLC which has elected to be taxed as either an S or (even worse) a C corp, may create an unfixable tax disaster. Be certain to do this properly.