All Forum Posts by: Account Closed

Three things you need to look at.

A Power of Attorney statute in most states has a prohibition against "self-dealing" and a daughter selling her mother's house would be presumed to be self-dealing, regardless of having the purest motive in the world.  Check the Michigan statute.

Second, if the mother is having part or all of her nursing home expenses paid through the SSI program, then Medicaid will have a claim on the estate once the mother dies.  A lien will not be filed in the meantime, but the right to file it will always be there.

Third, the mother is probably qualifying for SSI in spite of the fact that she has an asset that she could sell and make the payments, because the home is exempted from this rule.  Selling the house, which would be converting it to cash, might disqualify the mother from receiving SSI.  These disqualifications can run for more than two years before the person is permitted to re-apply.

This could be about much more than just selling a house.

I hope this helps.

Michael Lantrip

Charlie Cameron:

If you are "still paying the seller" for the property, and you actually took title to the property, then the seller financed your purchase of the property, just like a lender would have, and you can pay off the note any time you want, unless there are terms in the note to the contrary.

And, yes, if the property qualifies for a Section 1031 Exchange, then who you bought it from is not an issue, as long as it was not a Related Person.

I hope this helps.

Good Luck.

Michael Lantrip

Mike Louis:

Why are you not just creating a single-member LLC to own each property, with you as the single member?

Everything is separate.

That is the most protection you can get with the LLC structure.

It doesn't matter how you introduce yourself to "communicate with new owners, brokers, etc."

You are your brand.  If you are successful, people with want to do business with you.

Good Luck.

Michael Lantrip

The starting point is to describe what you mean by "property is held in our trust."  Also, what do you mean when you say that "the trust will no longer be valid as I am remarrying?"

Then we can go through the determination of whether the property qualifies for a Section 1031 Exchange, and what other options might be available for you.

By the way, what did your Divorce Decree say about the property?

Michael Lantrip

Thanks.  I'm doing research on my next book, and I'm glad to share the information.

The answer depends on information you have not provided.

1.) Where are these LLCs created?

2.) Where do they own property?

3.) Where are they conducting business?

4.) What elections have you made for tax purposes?

5.) Are they single-member LLCs?

6.) Are they disregarded entities?

7.) Have you elected to be taxed as a corp and chosen Sub S status?

8.) Do you have a partner and where is he domiciled?

9.) Are the financial records and funds located in NC?

10.) Are you filing LLC tax returns in the states of formation?

11.) Are you individually filing Non-Resident tax returns in these states?

LLCs and their management are a lot more complex than people realize.  The answers are there, but you have to start with the right questions.

I hope this helps.

Good Luck.

Michael Lantrip

Mark S.:

Here's what you need to know.

The $175 fee is called a tax, is computed as a tax, and the computation is based on income, but it is not a tax in the traditional sense.

It is a fee.

It is separate from the Kentucky Form 725 that you file as a single member LLC.

The fee is called the Limited Liability Pass-Through Entities Tax (LLET).

It is based on the entity's Gross Receipts, but has a minimum amount of $175 due each year.

You say you had no income.  That is probably why your liability is $175.

The LLET applies to all business entities operating in Kentucky except General Partnership.

The return is called the LLET Return and is due on April 15 with your other income tax return.

Failure to file by the due date triggers a penalty of 2% of the amount due for each 30 day period of delinquency, or portion thereof, with a minimum penalty of $10.

See Kentucky Revised Statutes Ann. section 131.180(1).

Since you have already filed your 2016 return and it has been accepted, you might want to leave that alone.  This "tax" has nothing to do with that anyway.

The $175 problem is because you failed to file the LLET Return.

If you have been contacted and told that you failed to file, and that you will be receiving a "bill/letter/whatever," wait until you get that and do what it says.  My guess is that you sign something and send it back with a check.

I hope this helps.

Good Luck.

Michael Lantrip

Tommy F. is correct.  You can apply that one rule to any set of circumstances and you're OK.

Your partner owns real estate which he has pledged as collateral on a loan, creating a lien on the property.

In Texas, we do no "add a name to the title."  The existing deed will remain exactly the way it is.

When he sells the property, a new deed is drafted, executed, and filed of record.

He cannot sell you a one-half interest in the property without being in default on his Note and Deed of Trust.

He should know this.

If you want to proceed, you and he form an LLC and arrange for financing, he sells the property to the LLC and pays off the existing debt, then you will each be equal owners of an LLC that owns property and has debt.

I hope this helps.

Good Luck.

Michael Lantrip

Here's a thought that might help you decide.

If you are earning income in Mass and not filing an entity or individual tax return on it, you will be having bigger problems than just a $500 unplanned expense.  If you are filing the return, you will have to put information on it that will trigger questions about addresses and EINs.

The Mass Department of Revenue and probably the Secretary of State cross reference with the IRS to make sure everyone is following the rules.

I can't think of a single scenario where you have an option of doing anything other than what the situation requires you to do.

And, Yes, if your entity is not registered with the state, and you are sued, you do not even have standing to file an answer to the lawsuit.

I hope this helps.

Michael Lantrip