[WSBARP] Transfer of commercial property from corporation to LLC

[Mark Higgins]

What is the consideration the corporation receives in exchange for its
transfer to the LLC?  It seems to me you might be missing a few steps and
that there may be income tax issues.  For example, do the shareholders
transfer their shares of stock into the LLC in exchange for its units, with
LLC now the 100% shareholder?​  Does the LLC then liquidate the corporation
and thereby receive a deed for the property?  If it was an S corporation,
does the LLC qualify as a shareholder?

On Fri, Jan 23, 2015 at 9:05 AM, PrestonFoskey <preston at plfps.comcastbiz.net
> wrote:

>  Listmates:
>
>                 Client has small family corporation that owns real
> property with small apartment complex.  Client wants to form LLC and
> transfer real property from corporation to LLC.
>
>                 Will client be required to pay excise tax on transfer from
> corporation to LLC when owners of corporation are same individuals as
> members of LLC?
>
>                 Thanks in advance.
>
>
>
> *Preston L. Foskey**, *Attorney at Law
>
> WSBA # 12509
>
> *Preston L. Foskey, P. S.*
>
> 8248 East D Street
>
> Tacoma, Washington 98404-1042
>
> Phone:  253.535.5829  Fax:  253.535.9391
>
> E-Mail:  preston at plfps.comcastbiz.net
>
>
>
> WARNING:  This email (including any attachments) is covered by the
> Electronic Communications Privacy Act (EPCA), 18 U.S.C., Sec. 2510 - 2522,
> is confidential and privileged.  This email is solely for the use of the
> addressee(s) named above.  Receipt by anyone other than the individual
> recipient is NOT a waiver of attorney-client privilege.  Any violation of
> the ECPA is subject to the penalties stated therein.
>
>
>
> SPECIAL NOTICE TO CLIENT(S):  If you are my client this email is directed
> to you, DO NOT FORWARD to any other party, or you could be waiving the
> attorney-client privilege.
>
>
>
> Notice:  The information contained in this e-mail is confidential and may
> also be attorney-client privileged.  This information is intented only for
> the use of the individual or entity to whom it is addressed.  If you are
> not the intended recipient, or the employee or agent responsible to deliver
> it to the intended recipient, you are hereby notified that any use,
> dissemination, distribution,or copying of this communication is strictly
> prohibited.  If you have received this e-mail in error, pleasee immediately
> notify me by replying to this e-mail and deleted the original.  Thank you.
>
>
>
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp
>



-- 
Mark T. Higgins
Mark T. Higgins, P.C.
P.O. Box 57
Darrington, WA 98241
206-491-2420
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20150123/5a6a1d61/attachment.html>