You will pay ordinary income tax PLUS 15.3% self-employment tax PLUS state income tax. A

In the event that any capital is returned to a Member,such Member's Capital Contribution shall be adjusted to reflect suchreturn.1.06 - "CapitalInterest" shall mean an Interest that would give the Member ashare of the proceeds if the Limited Liability Company's assets weresold at fair market value and then the proceeds were distributed in acomplete liquidation of the Limited Liability Company.1.07 - "Code" shallmean the Internal Revenue Code of 1986, as amended from time to timeand any successor statute or subsequent codification orrecodification of the federal income tax laws of the United States.1.08 - "Deficit AccountBalance" shall have the meaning set forth in Section 5.05.1.09 - "Distribution"shall mean any distribution pursuant to Section 5.04 by the LimitedLiability Company of cash to the Members or any Distribution in Kind.1.10 - "Distribution inKind" shall have the meaning set forth in paragraph (b) ofSection 5.04.1.11 - "Interest"shall mean, in the case of any Member at any time, such Member'sshare of the profits and losses of the Limited Liability Company atsuch time and the right of such Member to receive distributions ofLimited Liability Company assets to which such Member may be entitledas provided in this Agreement and applicable law as represented bysuch Member's Capital Interest or Profits Interest.1.12- "Limited Liability Company" shall mean TestStorage, LLC,as such Limited Liability Company may from time to time beconstituted.1.13 - "Losses"shall mean the net loss of the Limited Liability Company for a givenreporting period.1.14 - "Manager"shall mean one or more Persons designated by the Members to managethe Limited Liability Company as provided in Section 6.01.1.15 - "Member"shall mean any Person who, at the time referenced, owns an Interestin the Limited Liability Company.1.16 - "Person"shall mean an individual, a partnership, a joint venture, acorporation, a limited liability company, a trust, an estate, anunincorporated organization or any other entity or a government orany department or agency thereof.1.17 - "Profits"shall mean the net income of the Limited Liability Company for agiven reporting period.1.18 - "ProfitsInterest" shall mean an Interest other than a Capital Interestwhich entitles the holder to a share of the Limited LiabilityCompany's profits.1.19 - "SubstitutedMember" shall have the meaning set forth in paragraph (a) ofSection 7.01.1.20 - "TreasuryRegulations" shall mean the regulations of the United StatesDepartment of the Treasury pertaining to the income tax, as from timeto time in force.1.21 - "Unit" shallmean the capital units issued by the Limited Liability Company to itsMembers in exchange for Capital Contributions, which represent theMember's Interest in the Company.1.22 - "Value"shall mean, with respect to any Distribution, if cash, the amount ofsuch cash, or if not cash, the value of such Distribution calculatedto paragraph (d) if Section 5.04.ARTICLE IISTRUCTURE OF THE LIMITEDLIABILITY COMPANY2.01- Formation.The parties to this Agreement have organized aLimited Liability Companyunder the provisions of the Act by delivering Certificates ofOrganization to the Secretary of State of the State of Iowa forfiling.

How do I determine basis to pay as little capital gains tax as possible?

It is your duty to your family and community to pay as little tax as legally possible.

Anything left over you didn't use would be taxed at long term capital gains tax as "boot". 

If you do not qualify for the exclusion (ie. lived there less than 2 out of the last 5 years) you pay a capital gains tax. A

Hoping there are some other folks in the Connecticut area with some referrals, or honestly if there are referrals for a CPA who would handle/practice CT tax as well so they can help with my specific needs.

Or you could do a 1031 exchange on it and defer the tax.  As

I personally used Exchange Resources, in San Diego, before, and trust them.Also, if you sell the house after owning it for a year, your tax liability should reduce to capital gains tax, as opposed to normal income tax.

Are you talking about the living last 2 out of the past 5 years rule where you get no capital gains tax? As