Best way to swap ownership interest

[Rick Bassett]

Looking for some creative advice that hopefully minimizes the tax bite.

My business partner and I own two houses free and clear in our LLC. We each hold a 50% interest in the LLC.

The values of each house are approximately the same, and there are no loans or outstanding debts.

He wants to cash out so we thought a good strategy might be for us to sell one of the houses, and let him take all of the proceeds, and for me to take full ownership of the other one.

Essentially, I am looking to swap my half interest in one of the houses for his half interest and the other one. I’m going to hold mine so hopefully no taxes will be due on my end and he’s going to sell his and he will be responsible for any taxes on that one.