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Updated over 6 years ago,

User Stats

79
Posts
43
Votes
Phil Morgan
  • Investor
  • Amherst, OH
43
Votes |
79
Posts

Buying the entity instead of the property for tax reasons?

Phil Morgan
  • Investor
  • Amherst, OH
Posted

I am under contract for a 36 unit building and looking at all of my options.  The property has a current tax valuation of $861k and I am looking to purchase the place for nearly double that (it's actually a great price for the building trust me!).  Current taxes are $24k but once the schools get a hold of this sale they will want a reevaluation and the taxes could jump as high as $44,250.  I was thinking of trying to buy the entity the property is held in instead of the property so the property wouldn't be listed as transferring ownership.  Has anyone used this strategy before and if so was it successful?  I know some states require a reevaluation when an entity holding a property changes ownership but I am not sure if Ohio is one of those states.  Any advise would he greatly appreciated.  

And YES I know I will have to consult my attorney, I am just coming to you guys first to get an idea before I pay him for his input. 

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