Tax Implications of Selling Property from one LLC to another

Tax, SDIRAs & Cost Segregation
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Tax Implications of Selling Property from one LLC to another

Mike Mefferd
Property Manager · Dayton, OH · Member since 2014 · 38 posts · 11 votes

I am looking for tax advice if I sell a property from one of my LLC's to another LLC that I own. WIth this sale, it would show $150k loss and I wanted to know if this loss could be deducted on my taxes. Looking for any advice on if this is even legal.

Thanks in advance,

Mike

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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
9y

@Mike Mefferd

Hi Mike - How much Profit/Loss/Capital do you own in each of the LLC's?
if the answer is 100% - Then; you may not be able to take the losses on your return.

[email protected]917-280-8544
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  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Mike Mefferd

    You're probably better off going to a CPA with this kind of question, but if you're selling to an LLC you own, it seems like you would create an additional tax burden as that sale would count as income for one LLC and an expense for the other. Never heard of this situation before. Maybe there are more well-versed individual to weigh in on this, but talking with a pro would be your best bet.

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  • Rocky Griffin
    Flipper/Rehabber · Edmond, OK · Member since 2016 · 209 posts · 107 votes
    9y
    This is definitely a question for your LOCAL CPA. To me this sounds like a form of money laundering. Tread lightly until you are for certain.
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    9y

    @Mike Mefferd

    Hi Mike - How much Profit/Loss/Capital do you own in each of the LLC's?
    if the answer is 100% - Then; you may not be able to take the losses on your return.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.880 Reviews
    View Page
    1Reply
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