Thank you for using JustAnswer. I am Loren, a licensed attorney, and I will do whatever I can to answer your question and provide you excellent service.
I am sorry to hear of your dilemma. I realize how frustrating this is for you, but I believe I have information which you will find helpful.
Since you placed the property in an LLC, your wife, and any other members of the LLC, will be subject to capital
gains on the sale. Your wife would have received a step up in basis when she inherited the house. Therefore, depending on the amount of time she has had the house, her capital gains could be minimal, since it is calculated on the difference between the basis and the sale price.
If she is the sole member of the LLC she could put the property back in her name without tax consequence. However, to be excluded from capital gains she would need to meet certain criteria, such as having lived in the property as a principal residence for 2 of the last 5 years.
It is my privilege to assist you. Let me know if you need further information. I hope I have helped you beyond your expectations in the service I have provided to you. I am here for you.
Since this forum is no substitute for your own legal counsel, be sure to verify the information I have provided with a local attorney who is familiar with your local laws and procedures.
I am happy to answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction.