Calculating Taxes for Selling Part of LLC

[Scott Lewis]

Okay, BP community, I have a tax question and would appreciate any help you can provide.

I'm looking to sell my 50% ownership in an LLC to the partner who owns the other 50%. The LLC owns one small apartment building, which it's held for over 5 years, and no other assets except a checking account. My partner and I have different visions of where we want to go. He plans to sell the property and do a 1031 later in the year. I realize selling my share of the LLC is a taxable event for me, but there are reasons I don't want to do a 1031 exchange. I want to be sure I have a rough idea of the taxes I would be paying before I proceed with this since I don't know how the sale of part of an LLC works. I plan to talk with a CPA, but want to get feedback from the community.

If I sell my entire 50% stake, are my taxes calculated as if I sold the building with regards to depreciation recapture, etc. or are my taxes are calculated differently?

These aren't the actual numbers, but an example with some round numbers, so the depreciation values are not real, either.

Purchase price: 300K

Land value: 30K

Building value (270K) + closing costs at purchase (10K): 280K cost basis, 230K adjusted basis, 50K depreciation

Improvements over a few years: 50K cost basis, 30K adjusted basis, 20K depreciation

Intangibles (financing fees): 8K cost basis, 2K adjusted basis, 6K amortization

Total depreciation + amortization as of the end of 2021: 76K

I own 50% of the LLC, so the above items would be multiplied by 50% to calculate my share.

If I sell my 50% share for 210K, here are my calculations. Please let me know if this looks off.

Federal capital gains tax. My long-term capital gain would be 26K = 50% * (420K - 280K - 30K - 50K - 8K). At a 15% capital gains rate, that's 3.9K in taxes.

Federal depreciation recapture. Depreciation (+amortization) recapture would be 38K = 50% * (50K + 20K + 6K). At a maximum depreciation recapture of 25%, that's 9.5K in taxes. Is the maximum depreciation recapture rate still 25%?

Federal Net Investment Income Tax (if applicable based on my and my wife's total income) of 3.8% on the entire gain of 64K (26K + 38K), which is 2.4K.

DE state tax of 6.6% on the entire gain of 64K, which is 4.2K.

That brings my total tax bill to 20K.

Would I have to pay any taxes at my regular income tax rate at the federal level?

If I sell on June 1, will I factor in deprecation for the first 5 months of the year? How will that affect my partner's basis, etc.?

If you have any recommendations on a CPA I should call for a consultation around this specific issue, I'm open to suggestion.

Thanks in advance for your help and have a good day!