Sibling Partnership and Seperate Property
Hello. My sibling and I are about to inherit property from our father's estate. We are both inheriting a 12 unit apartment building and each of us is receiving an additional separate property, one is a single family home and the other is a duplex. There is no inheritance tax given the value of the estate. The property is in NY state. Sibling lives in NY. I live in California. It seems like an LLC partnership would be the way to go for the apartment building. Would people recommend that we set up separate LLCs for our individual properties? Am I correct to assume since the properties are in NY the LLC would need to be set up in NY as well? Also wondering if anyone is aware of the tax implications for residing in California and owning property in NY.
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@Matt Eade I'm not an attorney and this isn't legal advice, but you're not required to form an LLC in the state where the property is located.
Holding your single family in an LLC can indeed be ideal for tax purposes since businesses often qualify for more deductions than individuals. I'd also recommend structuring your LLC in a state with favorable tax laws. The top three tax havens in the U.S. are Delaware, Nevada, and Wyoming. There are a plethora of attorneys on BP feel so free to do a search for corporate attorneys and choose one that can assist with properly structuring your LLCs.