Tax Tale of Two Brothers
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Tax Tale of Two Brothers (by Ned [AL]) Feb 26, 2024 12:11 PM
       Tax Tale of Two Brothers (by Ray-N-Pa [PA]) Feb 26, 2024 1:24 PM
       Tax Tale of Two Brothers (by MikeA [TX]) Feb 26, 2024 5:14 PM
       Tax Tale of Two Brothers (by ned [AL]) Feb 26, 2024 7:40 PM
       Tax Tale of Two Brothers (by Ray-N-Pa [PA]) Feb 27, 2024 6:52 AM

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Tax Tale of Two Brothers (by Ned [AL]) Posted on: Feb 26, 2024 12:11 PM
Message:

Joe and Bob own 123 Main St. together in an LLC that has other assets, too. They've had it for 30 years.

Joe wants to buy Bob's 1/2 of the property.

Problem is, the LLC owns the property.

Can the LLC transfer 50% interest in the property to Joe, and 50% interest in the property to Bob.

Then Joe buys Bob's interest.

Bob will have to pay cap gains tax, but Joe shouldn't.

Right?

--199.36.xxx.xxx




Tax Tale of Two Brothers (by Ray-N-Pa [PA]) Posted on: Feb 26, 2024 1:24 PM
Message:

it will depend on how the operating agreement reads. If it is set up as a TIC, they own only 1/2 of the LLC each. There would be capital gains in that case.

Now the great news - you can always change that operating agreement. Now would be a great time to hire an attorney and have that reviewed to make sure you are not feeding your rich Uncle Joe. --24.101.xxx.xxx




Tax Tale of Two Brothers (by MikeA [TX]) Posted on: Feb 26, 2024 5:14 PM
Message:

Talk to a lawyer and tax guy for process and tax ramifications. Buy his ownership in the LLC. The LLC owns the house. --209.205.xxx.xx




Tax Tale of Two Brothers (by ned [AL]) Posted on: Feb 26, 2024 7:40 PM
Message:

Mike-

I'd agree, cept llc has other assets... --199.36.xxx.xxx




Tax Tale of Two Brothers (by Ray-N-Pa [PA]) Posted on: Feb 27, 2024 6:52 AM
Message:

Mike might be saying though it is cheaper to sell everything in the LLC and then sell back the items that are not supposed to have transferred.

Why?

Our state has a transfer tax on real estate. You wouldn't be buying real estate, you are buying an LLC instead --24.101.xxx.xxx



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