[WSBARP] assignment

[Cody Moore]

I'm going to tiptoe in to offer an opinion as much as ask some questions.
It's my understanding that a H/W LLC can be treated as a disregarded entity
and thus they still get the benefit of the home sale exclusion under IRC
121. I'm basing my understanding on the attached Rev. Proc. I had saved away
along with some old notes (not attached).

 

Thanks, 

Cody R. Moore 

Westberg Roepke Moore, PLLC

(208) 883-1520

____________________________________________________________________________
___

This transmission, or any attachment thereto, from Westberg  Roepke Moore,
PLLC is intended only for those persons and/or entities to whom it is
addressed.  The information transmitted may be confidential and/or protected
by a privilege or as attorney work product.  If this transmission is not
intended for you, please return it and then destroy it completely.  Any
unauthorized use of this transmission is strictly prohibited.

 

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Kary Krismer
Sent: Wednesday, November 22, 2017 8:44 AM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] assignment

 

I would be surprised if the escrow would go along with that since you would
be violating the terms of the P&S agreement.

I have no idea what the tax advisor is thinking, but is it possible that you
could just transfer it after the deed is recorded and get the same benefits?
I'm fairly certain you could still avoid REET.  

As to what you might be missing:  1.  No homestead protection;  2.  No sale
of property excluding 250k/500k of gain on income taxes; and 3.  No
deduction of interest or real estate taxes.  Again I have no idea what the
tax advisor is thinking, but the first two of those are two things I
wouldn't want to give up--the third might not matter if it's a cash
purchase.

Kary L. Krismer
John L. Scott/KMS Renton
206 723-2148

On 11/21/2017 4:49 PM, Scott Thomas wrote:

Clients entered into P&S agreement, entailing construction of new home.
NWMLS form used, which precludes assignment unless seller agrees.
Construction of home turned out to be a difficult process, with numerous
issues turning up.  Long story short, I will make certain neither party sees
the other at the escrow office when the sale closes.  Now for my question:
clients, who entered the P&S agreement as a marital community, have been
advised by their tax lawyer that it would be preferable to form an LLC to
take title to the property.  I am thinking the easiest way to accomplish
this is to simply have clients assign their interest in the property at the
time of closing, after seller has executed closing documents and the P&S
agreement is satisfied, but before the deed is recorded.  Transfer taxes
should not be an issue, and all obligations under the P&S agreement would be
completed.  Am I missing anything?






_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com <mailto:WSBARP at lists.wsbarppt.com> 
http://mailman.fsr.com/mailman/listinfo/wsbarp

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20171122/ce23e05f/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Revenue_Procedure_2002_69_IRC home sale exclusion SMLLC.pdf
Type: application/pdf
Size: 72405 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20171122/ce23e05f/Revenue_Procedure_2002_69_IRChomesaleexclusionSMLLC.pdf>