All Forum Posts by: Chris Williams

Hello bigger pockets, 

I currently own a duplex in an LLC (sole owner) and I also own two other rental properties with a partner in a separate LLC. I want to let my partner "buy in" to my duplex for 50% of the equity that I have in the property. To do this he would write me a check for 50% equity, and then I would deed transfer the property from my sole LLC to the partnership LLC. My question is what are the tax ramifications of this? Is there a way to not pay taxes since I am doing a deed transfer instead of a true sale? or perhaps from the IRS perspective I allowed my partner to "buy in" for just sweat equity and management and the check goes un-noticed? Looking for advice on how to structure this.

Thanks!