[WSBAPT] Family Cabin LLC

[Teunis J. Wyers]

Before you take your client down this path, I strongly suggest that you
have a "come to Jesus" meeting with the potential owners of whatever entity
is going to own the cabin, to be certain that you have buyin from all
concerned.  It is pretty common for one or more of the kids, or one or more
of their spouses, to decide that they really don't care about saving the
cabin, don't want to participate in upkeep chores or expenses (such as
preparing tax returns), and in the end what the parents intended as a gift
becomes a wedge that divides a family.  Been there; done that.

On Tue, Sep 5, 2017 at 11:39 AM, Mike Winslow <mike at winslegal.com> wrote:

> Recently discussing with a CPA, whom I greatly respect, the ramifications
> of using LLC to own family cabin, in order to create succession plan and to
> address ongoing collection of money to cover operation expenses.
>
> The CPA states that if an entity is formed under state law, the IRC
> requires filing of a tax return, even if there is no profit motive for the
> organization and no net income. The cost of preparing a partnership tax
> return runs a $1000 or better in my county, so this is no small expense.
>
>
>
> Any info to contrary, or way around this requirement?
>
> I have already considered a trust, but I think that too would require
> filing a return, and it is not as useful of an ownership vehicle.
>
>
>
>
>
> Michael A. Winslow
>
> 1204 Cleveland Ave.
>
> Mount Vernon, WA 98273
>
> Ph. 360-336-3321 <(360)%20336-3321>
>
> Em. Mike at winslegal.com
>
>
>
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>
>
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-- 
Teunis J. Wyers @ Wyers|Wyers, Attorneys
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