All Forum Posts by: Edward Park

Hi everyone,

I have a unique situation wherein we placed 3 properties (all located in maryland, baltimore city) into an S corp and looking to transfer at least 2 of the properties out of the LLC into a multi-member LLC partnership.

1)  are we subject to transfer taxes or fees for the transferring?

2)  if so, what are the fees involved?

3)  do you recommend a tax attorney that can help us do this process?

Thanks in advance.

-   Edward

Hi everyone,

Good morning!

We are transferring a rental unit from one LLC to another LLC. Both LLCs are s corporations and incorporated in maryland and are owned by the same members (entity).

Questions:

When we transfer can we arbitrarily decide on the value of the property?  do we pay a transfer tax?  are we subjected to any other fees?

How does the transfer affect the stock/debt basis?  does it reduce it by the amount the property is transferred at?

How do you reflect the transfer of the property on the stock/debt basis worksheet?  which line number on part I will this transfer be reflected?  I assume it is line 13.  If not, where do you place it?

Thank you again for your insight.

Much appreciated

- Edward