Selling a share of an LLC/Properties

[Artem Lopatchenko]

Hello,

I'm sure this has been answered somewhere before, but I cannot locate an answer. I am looking to put my properties into an LLC (100% owned by me) and then create a parent LLC that would own the subsidiary LLC in full. I would own a 75% share in the parent LLC (effectively selling a 25% stake in my properties to bring on a partner).

- What would the tax implications be as far as the $25,000 pass through allowance for RE nonprofessionals? 

- Also, for those who have done this or something similar, what advice can you provide?

Thank you 

[Ashish Acharya]

Originally posted by @Artem Lopatchenko:

Hello,

I'm sure this has been answered somewhere before, but I cannot locate an answer. I am looking to put my properties into an LLC (100% owned by me) and then create a parent LLC that would own the subsidiary LLC in full. I would own a 75% share in the parent LLC (effectively selling a 25% stake in my properties to bring on a partner).

- What would the tax implications be as far as the $25,000 pass through allowance for RE nonprofessionals? 

- Also, for those who have done this or something similar, what advice can you provide?

Thank you 

Your post is confusing. The subsidiary LLC that is owned by the parent LLC is going to have the property you going to contribute? Meaning the first LLC that is 100% owned by you is now SUB llc that is owned by parent LLC?

You are changing ownership more times than it is needed. Might have to pay recording fee more than once. 

What are you trying to accomplish? Give a share of your property to another person? There is easier way to do this, but need to know what are you trying to accomplish.