Buying the property and the name of the llc

9 Replies

I AM Buying the property and aLSO the name of the LLC . Is there a way that I can help the seller not pay taxes on the property that there selling and put it all on me since I'm taking over the llc. It's a way that I can negotiate a lower price on the property wHICH IS a win for me also . Basically what I'm really trying to say is I want to make a good offer a better Offer By him not paying any taxes and me buying the property and the Llc, which is taxed . I can neogiate at a lower price , oh and Ita a commercial apartment building .
Originally posted by @Alex Hamden :
I AM Buying the property and aLSO the name of the LLC . Is there a way that I can help the seller not pay taxes on the property that there selling and put it all on me since I'm taking over the llc. It's a way that I can negotiate a lower price on the property wHICH IS a win for me also . Basically what I'm really trying to say is I want to make a good offer a better Offer By him not paying any taxes and me buying the property and the Llc, which is taxed . I can neogiate at a lower price , oh and Ita a commercial apartment building .

That is a new one to me. One of the tax guys will know, but I've got to guess that the seller will owe the IRS regardless of what you call the LLC or the transaction. If he did a 1031 exchange, that would be different. I doubt he is willing to risk Tax Fraud to save you a few bucks.

Originally posted by @Alex Hamden :
@Mike M. It's not tax fraud iam taking over the llc which has a bank account and tax id number . And it's not a few hundred but more like 300,000 man that he will be saving me .

No problem. I don't think the IRS will miss the taxes on $300,000 tho' I could be wrong.

Maybe @Michael Plaks is a better source for what the IRS is concerned about.  ;-)

@Account Closed Dude I can bet you don't have properties you just leach off other people's sales look it's more like 3mm And he is saving . 300,000 cause Iam paying the 300,000 in taxes for him being the new owner of the llc and your not helping me .
Originally posted by Account Closed:
Originally posted by @Alex Hamden:
Account Closed It's not tax fraud iam taking over the llc which has a bank account and tax id number . And it's not a few hundred but more like 300,000 man that he will be saving me .

No problem. I don't think the IRS will miss the taxes on $300,000 tho' I could be wrong.

Maybe @Michael Plaks is a better source for what the IRS is concerned about.  ;-)

 If you can give insight if this is a bad idea or if I can  I put realestate in a different way without making any fraudulent mistakes realestate is all I think of every day 

@Alex Hamden

If the property is owned by the LLC you can buy the LLC and the land is still owned and possibly still financed. When you say taxes there are fed income taxes maybe long term capital gains or short term-not sure. There is usually state and local tax "transfer" tax or "stamps", state dependent, on real estate that may possibly be avoided by the buying the LLC. I would get your Cpa and or a tax attorney to review the transaction and help determine the most tax efficient approach - especially if $300k in taxes is at stake. Partial sales over a couple of years may be another approach.

@Alex Hamden , If he sells you the membership interest in the LLC he recognizes a gain on the sale of the interest. If he finances you on that purchase as an installment sale he will delay but pay taxes on it. either way he pays tax on the gain.

If he sells you the LLC as @Carl Fischer indicates the LLC stays in place as well as all debts contracts etc of the LLC.  But if he sells you the LLC he loses the opportunity to do a 1031 exchange and defer tax on the sale of the real estate because the real estate is not being sold - only the entity which owns the real estate.

If he sells you the property then the LLC could do a 1031 exchange. But the LLC will also need to own the new property so he would have to retain the LLC in order to do that.