Richmond, VA asked in Tax Law and Real Estate Law for Maryland

Q: If a land parcel is owned by the same parties equally but a portion is held in a llc and other held as individuals.

Can the all the sales proceeds be just allocated to the LlC and just zero proceeds to the Individuals so no 1099 will be issued ?

Related Topics:
1 Lawyer Answer
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: The individual owners should have deeded their interest to the LLC before the sale, if they wanted the proceeds all deemed income to the LLC. While the individual owners may be able to direct payment to the LLC, or deposit their checks into the LLC bank account, I believe at this point that will not change any tax implications for the individual owners, and the after-sale transfer of funds will be treated as paid-in capital to the LLC. This is really a tax question that should be addressed to your accountant.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.