Nashville, TN asked in Real Estate Law, Tax Law and Estate Planning for New York

Q: Would it be advised to purchase member interest in an LLC to acquire a property?

My parents have a commercial real estate property owned by an LLC, which they own. The property has no mortgage, loan, etc. I am thinking about purchasing the membership interest in the LLC from them to acquire the property. What would be the tax consequences, advantages, disadvantages? What would happen if they just put my name in as a member?

2 Lawyer Answers
Inna Fershteyn
Inna Fershteyn
Answered
  • Estate Planning Lawyer
  • Brooklyn, NY
  • Licensed in New York

A: I think you need to have a consultation with Estate Plannig not real estate attorney as there are estate planning/tax consequences involved here. I would obviously look at the basis (value of real estate investment at purchase) and consider capital gain issues. Best idea is to put LLC shares into a trust. Give our office a call.

Inna Fershteyn

Law Office of Inna Fershteyn and Associates, P.C.

1517 Voorhies Ave, Suite 400

Brooklyn, NY 11235

tel: 718-333-2394

fax: 718-701-8859

www.BrooklynTrustandWill.com

5 users found this answer helpful

Michael David Siegel
Michael David Siegel
Answered
  • New York, NY
  • Licensed in New York

A: No one can answer this on an internet site on tax issues without seeing the returns of prior years. The operating agreement governs new members. Likely, they can just cut you a membership certificate from the black book kit.

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