[WSBARP] Conveyance Sequencing

[Mark Anderson]

I agree that there are differences in the amount of work.  I just want to make sure my Client is on solid ground as far as excise tax exemptions and any capital gains tax implications (like a step-up in basis, etc.)
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of John McCrady
Sent: Wednesday, October 6, 2021 11:07 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Conveyance Sequencing

>From a title perspective I don't think it makes any difference.  Each transaction should be Excise Tax exempt.
It does seem that option 2 involves a bit more paperwork, transferring 5 LLC interests rather than just 1.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Mark Anderson
Sent: Wednesday, October 06, 2021 10:32 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Conveyance Sequencing

Hypothetical scenario (aren't they all?):
"Original LLC," a single-member LLC, owns five separate pieces of real property, some of which are used as rentals.  PC, the single member of Original LLC, wants to create new single-asset LLCs 1-5 to own the individual properties.  And PC ultimately wants to transfer any membership interests he has in any LLC(s) into a Revocable Trust.
Questions:
Should PC convey title to the properties by deed from the Original LLC to LLCs 1-5 and then transfer his interests in LLCs 1-5 to the Revocable Trust?
Or should PC transfer his interests in Original LLC to the Revocable Trust, and then convey title to the properties by deed from the Original LLC to LLCs 1-5?
Or does the order in which this is done really matter?
Thanks.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<https://f.xdref.com/?id=196HCVel010177&from=wsbarp-bounces@lists.wsbarppt.com&to=j.mccrady@pstitle.com&url=http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

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