All Forum Posts by: Lance Lvovsky

@Jeremy Lee

You can do a 1031 exchange for a property owned by an LLC. Like I said your proposed structure will result in a gift tax filing for your parents. You will need to engage a CPA for specific tax advice based on your fact pattern. Otherwise all accountants would not be in business :)

@Jeremy Lee

If they own the rental property and transfer to an LLC with you having some ownership, the a gift has been made and a gift tax return should be filed. Note this does not mean gift tax is owed assuming they still have their lifetime exemption. Alternatively they own the LLC and pay you X% of profits based on gross rents and it is structure as you are a true management company/individual.

As mentioned above, there are accountants on these forums so I would reach out to 2 or 3 and have an initial discussion. It sounds like you have a few moving pieces, and you will want to understand the full extent of your tax exposure given your circumstances.

@Andrew Banner

As mentioned above you should consult with a tax advisor immediately on the tax implications. A tax advisor would need to review the corporate documents, understand how you won your shares (outright or in trust) and the nature of activity in the corporation (passive income or not). This dictates your filing obligations. Failure to file international informational forms are very costly with the IRS assessing steep penalties.

@Nicolas Ake

Natalie gave you good pointers. In addition consider the banking impact. Bank may not give a heloc to a property owned in an LLC. Generally would need to be a commercial line of credit.

@Michael Ferrera

Thanks a the property owned in an entity or in her name? There may be some planning opportunities. Also, was this a rental in the past that generated foreign tax credits? Are they credit carryovers? These are questions for which you may not have answers to and that is fine - get with a CPA who can help you navigate the complexities here and help you with your tax return.

@Jill Redfern

There are several on here from the west coast, I am not sure if any are in LA. Most CPAs these days work with clients remotely as well.

@Danny Neess

As a foreign investor (nonresident alien) having a single member LLC makes this a disregard entity so all Income including any capital gains go on your individual return. However be mindful you are also required in this case to file an informational return, Form 5472. Failure to file is a $25,000 penalty.

@Pierre Luc leblond

On the Canadian... yes.

@Pierre Luc leblond

Under federal law, nonresident investors in a Partnership must have tax withheld at the entity level. Certain states follow this as well.