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<p>That very well might be correct--my prior post was what the OP
"might" be missing, but I don't think that came through well.
Those would be issues that would concern me. Tax is an area that
has always interested me, but not something I practice in. <br>
</p>
<p>I would note that the item you posted though only seems to apply
to business entities, which this seemingly is not, and only in
community property states, which makes me wonder if it's something
meant to be applicable to estate taxes.<br>
</p>
<p>But as to your line of thinking, there is also subpart (c)(3) of
this which seems to apply more directly to the gain issue (but not
the interest issue), but which refers to the entity having a
single owner for some reason (and also covers trust entities).</p>
<p><a class="moz-txt-link-freetext" href="https://www.law.cornell.edu/cfr/text/26/1.121-1">https://www.law.cornell.edu/cfr/text/26/1.121-1</a></p>
<pre class="moz-signature" cols="72">Kary L. Krismer
John L. Scott/KMS Renton
206 723-2148</pre>
<div class="moz-cite-prefix">On 11/22/2017 9:44 AM, Cody Moore
wrote:<br>
</div>
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<p class="MsoNormal"><span style="color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">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).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">Thanks, <o:p></o:p></span></p>
<div>
<p class="MsoNormal"><b><span style="font-family:"Calibri
Light",sans-serif;color:#1F497D">Cody R. Moore <o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Calibri
Light",sans-serif;color:#1F497D">Westberg Roepke
Moore, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri
Light",sans-serif;color:#1F497D">(208) 883-1520<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">_______________________________________________________________________________</span><span
style="font-family:"Calibri
Light",sans-serif;color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">This
transmission, or any attachment thereto, from Westberg
Roepke Moore, PLLC is intended only for those persons
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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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext"><o:p> </o:p></span></p>
</div>
<p class="MsoNormal"><span style="color:windowtext"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1
1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="color:windowtext">From:</span></b><span
style="color:windowtext">
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
[<a class="moz-txt-link-freetext" href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf
Of </b>Kary Krismer<br>
<b>Sent:</b> Wednesday, November 22, 2017 8:44 AM<br>
<b>To:</b> <a class="moz-txt-link-abbreviated" href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> Re: [WSBARP] assignment<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p>I would be surprised if the escrow would go along with that
since you would be violating the terms of the P&S
agreement.<o:p></o:p></p>
<p>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. <o:p></o:p></p>
<p>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.<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>John L. Scott/KMS Renton<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
<div>
<p class="MsoNormal">On 11/21/2017 4:49 PM, Scott Thomas
wrote:<o:p></o:p></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal">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?<o:p></o:p></p>
<p class="MsoNormal"><br>
<br>
<br>
<o:p></o:p></p>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
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