All Forum Posts by: Matthew Creel

@Jasper Cangelosi How is the property owned now? Is it owned in his personal name? Or by an entity like an LLC?

He could definitely gift you the property.  However, whether or not he pays any tax on that transaction will depend on multiple factors.  Also, there are other things regarding a gift transaction that need to be considered before pulling that trigger that could affect the long term tax attributes of the property.  

Jasper,

Since your father is willing to owner finance the property he could potentially structure the transaction as an "Installment Sale" for tax purposes and recognize the gain over the course of the finance term.  The total gain recognized will be the same overall.  However, this method just lets him recognize the gain over a longer period as opposed to recognizing it all in the year of sale.  

Jeff, 

A number of the clients we service hold commercial real estate with long term lease tenants along with personal vacation property and other rental property in the same LLC. It is my understanding that your liability exposure associated with the LLC entity choice is limited to your capital investment. Also, at first glance it would seem that your administrative and tax compliance burden could get quite large depending on how many properties you plan to own if each is housed in its own LLC.

I am hoping someone might have some tips/best practices in drafting a letter to send to the last known owner of a vacant distressed property.  Any suggestions or even templates you have found success with would be greatly appreciated.  Thanks so much.