All Forum Posts by: Chris K.

@Jacob Bopst

Depends on several factors but most likely yes. Try reading Scenario 2 in the PDF below.  

https://www.revenue.pa.gov/Gen...

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Travis Rogers

My personal rule is that the holding entity (i.e. the LLC that actually owns the real estate) should be incorporated in the state where the property is. So if you are buying a TX property, I would use a TX LLC to own it. You could own the TX LLC as an individual or another LLC -- say an OK LLC --- if you see the need to do so. But you shouldn't really create layers of LLCs unless you know what you are doing.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jacob Bopst

Realty transfer taxes in Pennsylvania is a complicated system with a lot of odd issues. The attorney you met with is absolutely correct. You don't want to assign in your situation because it exposes yourself to a high risk of double transfer taxes.

I would go back to that attorney that gave the correct advice and ask him/her to represent you. If the seller balks at canceling the original contract and signing a new one, you would have to do some analysis as to what risk level you are at with double transfer taxes.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Cameron Wilks

As @Soh Tanaka wrote, QBO is an accounting software. The purpose behind QBO is to help you organize your financials. What you do with that organized information (e.g. investment analysis) is outside the scope of what QBO is meant to do. 

If you are handy with Excel or Google Sheets, you can create a sheet that can take the raw data from QBO and instantly analyze the numbers. I prefer it since you can tailor your analysis. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Kurt Linwood

You need a CPA and maybe an attorney to help you with the process. Now ideally you would have hired the CPA before the transaction so that you could have planned it. But unfortunately that time has passed. 

Maybe you could do a QOZ deal now to save on taxes. You won't get the full benefit but I believe you would still a get a meaningful tax saving. But just buying real estate alone probably won't be enough. I would immediately find a qualified professionals to discuss. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Eric Eickhof

@Ronald Rohde is your guy!

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Carla Cooper

It depends on the situation. But as a general rule, I would own real estate using an LLC from that particular state. So if you want to purchase a Pennsylvania property, I would use a PA LLC. The NJ LLC could own the PA LLC if you see the need for it.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jared Hettler

Not sure. Can't say I am familiar with that term in this particular context. Could be a local terminology. 

As for why they don't "snatch" up judicial sales, it's because they are one of the riskiest way to buy real estate in Pennsylvania. If there is a defect during the sale process (which is common), the court will protect everyone else before the buyer. The price thus reflects this risk/uncertainty. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jared Hettler

In Pennsylvania, the two main tax sales you deal with are upset sales and judicial sales. Upset sales only divest the ownership of the property. So you buy everything subject to all other interests. Judicial sales can theoretically divest all other interests in the property. In practice, that doesn't always happen. 

Repository sales refer to properties that do not sell at a judicial sale. Properties that do not sell at an upset sale can be purchased at what the statute calls a "Private Sale." 

Again, I would stress that judicial sales (and by extension repository sales) can divest the other liens. But the fact that they can doesn't mean that THEY WILL. 

I'm not sure what you are referring to when you say commissioner's sale. The tax sale laws have a mechanism where county commissioners can purchase the property at a tax sale. After such sale, the commissioners could sell it. But I haven't really dealt with that in the past. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Matt Snyder

@Dave Foster is your man!

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.