Tax Consult Needed for Flip Closing on Tuesday!

4 Replies

I am closing (selling) my first flip on Tuesday. I purchased the SC property though a NC based LLC. The closing attorney sent me a SC Transferor Affidavit Tax Lien Inapplicable form to fill out, for which I must either declare that the assets being transferred are not business assets, OR that less than a majority of the business assets are being transferred. Neither of which I feel like are true. She does not seem to think the LLC would be considered a business but told me to contact a tax professional. I don't even see why it's necessary since they will be with holding taxes for the sale.

Does anyone know of a tax professional that could do a quick, last minute consult for me so I can figure out which tax documents I need to sign to get to the closing table? I don't have one that I work with regularly since this was my first one and I haven't even sold it yet. Does anyone have experience with this?

You didn't mention where you are located Chelsea.

If you are located in the Carolinas, you may want to reach out to @Natalie Kolodij and see if she can fit you in.

A turnaround of 24 hours on a new client consult is a bit of a tall order and falls into that "quick, cheap, quality -- pick two out of three" paradigm.  Most tax CPAs don't work weekends outside of "busy season" so that leaves only Monday...wishing you the best.

I found that resource as well. I'm struggling between the two statements:

"We struggled with the definitions in the Internal Revenue Code and finally decided that unless a property is an owner-occupied single family residence, the closing attorney should consider that it might be a business asset."

and 

"The business type is separate from the individual for liability purposes, and the business is taxed through the individual's personal tax return, based on its net income on Schedule C."

If the actions of the LLC will be taxed with my own individual taxes and not as a separate business, would the house be considered a business asset?