Cheapest way to "swap" property ownership without an actual sale

[Hanah Frickers]

Hi BP team,

My business partner and I own one property through an LLC (split 50-50), which for various reasons, we wish to exchange for a different property he owns outright through a separate LLC. I am looking at what might be the most cost effective way to change the ownership of these two properties without an actual sale occurring.

Some guidance what was suggested by a tax accountant was for me to sell my shares in the LLC we own together and then create a new LLC to transfer the title of my business partner's property to. This is to save costs relating to transfer taxes.

Does anyone have some advice or similar experience with such a scenario? 

If it helps, the property and LLC are located in Illinois and the value of the property is under $40k.

Many thanks and stay safe!

[Will Fraser]

Hi @Hanah Frickers -- the idea that the accountant shared seems good, as does the idea of a simple transfer using a Quit Claim Deed or something similar.  Since there is no mortgage on the property and there is shared interest (namely your partner) it should be possible and straightforward.

I'd love to hear what you end up doing here!