Updated over 10 years ago on . Most recent reply
Purchasing Half of Duplex from My Dad CPA suggested putting it in a LLC and selling half of the LLC to me
I recently suggested to my Dad an idea of purchasing 50% of a duplex he owns. I know that I would have to purchase a 50% interest in the whole duplex because I am California. My Dad has been living in one of the units for the last 9 years and before that he rented that unit. The other unit has been rented for about 28 years. His CPA suggested that he put the duplex in a LLC and sell me half of the LLC, so that he can get the 250,000 capital gain exemption since he has lived in one of the units 2 out of the last 5 years. My Dad plans on moving into the other unit afterwards. I was wondering if this seems like the best way to handle the transaction. Any help would be great. Thanks