<div dir="ltr"><div><div class="gmail_default" style="font-family:arial,sans-serif">I have helped several HNW individuals create charitable organizations. I am not, however, a tax attorney and always did this with a qualified CPA by my side. I am sorry that your client finds herself in this position. </div><div class="gmail_default" style="font-family:arial,sans-serif"><br></div><div class="gmail_default" style="font-family:arial,sans-serif">What I can share from those experiences was that there were multiple dire warnings about putting things into the 501(c)(3) as the rules for wrapping up the organization are that generally the <span style="font-family:"Google Sans",Roboto,Arial,sans-serif;letter-spacing:0.1px"><font color="#000000" style="">501(c)(3) organizations must use their assets to further their charitable purpose and, if they cease operations, distribute any remaining assets to another qualified charitable organization, not to individuals associated with the organization. If the Exec Director purchases the asset from the entity - that would be different. But I read your term "transfer" to ostensibly mean "give away"</font></span></div><div class="gmail_default" style="font-family:arial,sans-serif"><span style="font-family:"Google Sans",Roboto,Arial,sans-serif;letter-spacing:0.1px"><font color="#000000" style=""><br></font></span></div><div class="gmail_default" style=""><font color="#000000" face="Google Sans, Roboto, Arial, sans-serif"><span style="letter-spacing:0.1px">I would strongly encourage you to work with a qualified tax adviser who specializes in the world of non-profit entities. </span></font></div><div class="gmail_default" style=""><font color="#000000" face="Google Sans, Roboto, Arial, sans-serif"><span style="letter-spacing:0.1px"><br></span></font></div><div class="gmail_default" style=""><font color="#000000" face="Google Sans, Roboto, Arial, sans-serif"><span style="letter-spacing:0.1px">Best of luck to them!</span></font></div><div class="gmail_default" style=""><font color="#000000" face="Google Sans, Roboto, Arial, sans-serif"><span style="letter-spacing:0.1px">Brent</span></font></div><br clear="all"></div><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div dir="ltr"><p><b><span style="font-family:"Times New Roman",serif">Brent
Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (pronouns: he/him)<br>
<i>Attorney-At-Law</i></span></p><p><b><span style="font-family:"Times New Roman",serif">Law
Offices of Brent Williams-Ruth, </span></b><b><span style="font-family:"Times New Roman",serif"><font size="1">a division of BWR Consulting, PLLC</font></span></b><b><span style="font-family:"Times New Roman",serif"></span></b></p><p><b><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal
Way, WA 98003</span></b><span style="font-family:"Times New Roman",serif"></span></p><p><b><span style="font-family:"Times New Roman",serif"><font color="#ff0000">Mailing Address:</font> </span></b><b><span style="font-family:"Times New Roman",serif">PO BOX 3319; Federal Way, WA 98063 </span></b></p><p><span style="font-family:"Times New Roman",serif">Office/Scheduling
Phone:<span style="color:#004080"> </span><font color="#ff0000">(253) 285-7751</font></span></p><p><font color="#ff0000" face="Times New Roman, serif">For All Meetings & Scheduling: <a href="mailto:info@williams-ruthlaw.com" target="_blank">info@williams-ruthlaw.com</a></font></p><p>
</p><p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"></span></p></div></div></div></div><br></div><br><div class="gmail_quote gmail_quote_container"><div dir="ltr" class="gmail_attr">On Thu, Jun 26, 2025 at 6:17 PM <a href="mailto:laj-laws@juno.com">laj-laws@juno.com</a> <<a href="mailto:laj-laws@juno.com">laj-laws@juno.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div></div>
<div> </div>
<div>I would like input/assistance regarding whether there are negative consequences </div>
<div>(tax or otherwise) if a 501(c)(3) entity (which is an LLC) (“Entity”) transfers its real property</div>
<div>to the Executive Director personally (the Exec. Director and her now deceased husband </div>
<div>were the ones who initially put the real property into the LLC).</div>
<div> </div>
<div>The real property taxes are “eating her up” with recent assessments, and she’s been told</div>
<div>that if she transfers the property into her name, personally, then, because of her limited income,</div>
<div>she’d be entitled to a substantial reduction in her annual property taxes.</div>
<div> </div>
<div>Any thoughts, pitfalls to be aware of?</div>
<div> </div>
<div>Thank you in advance for your assistance,</div>
<div>Larry </div>
<div> </div>
<div> </div>
<div><span>LARRY A. JOHNSTONE, ATTORNEY AT LAW, PLLC</span></div>
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