[WSBARP] Transfer of LLC Member Interests And Excise Tax

[Rob Rowley]

I’m passing on an inquiry from a fellow attorney:

Thanks.

Rob Rowley



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*We recently did a closing where an LLC owned real property and sold their
LLC ownership to a buyer for an agreed price. We had the seller still pay
excise tax under "sale of controlling interest". *



*Then I had a client ask me the other day, "When a huge shopping center is
sold, do you think the seller pays excise tax if they transfer the entity
to the buyer (with possible problems!!!)?  It made me wonder if there is
some way that sellers get around excise tax....by use of LLCs or something.*



*Then, just today, a good client asked me if he could get around excise tax
by purchasing an existing LLC that owns real estate???*



*Have you heard of any such way to avoid it?   I haven't and don't think
there is.....but I wanted to ask you.*
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