Questions on Purchasing an existing LLC that hold RE

[Mark Updegraff]

If you purchase an existing LLC that holds real property do you avoid transfer tax? Do you keep the existing basis? If anyone has done this an can elaborate on The pros / cons I would appreciate it. I'm going to consult some professionals as well and will report back any findings. Happy Holidays!

[David Beard]

I would only purchase a brand new LLC created concurrent with the sale of it. So the property would need to be transferred from an old LLC to the new LLC, then transferred to the buyer, all at the close. Yes, this avoids transfer tax, at least in OH. I'm sure this triggers cap gains recognition and basis adjustment.