All Forum Posts by: Joseph Skoler

I have a piece of real estate owned by an s-corp (of which I am the sole shareholder).

It has appreciated substantially in the decades that I've owned it.

I would like to transfer it to an LLC (of which I would be the sole member).

But, I want to make sure I don't trigger the recognition of a capital gain.

How can I do that?

Thank you!

Thank you all for your help.

This is a great forum.

I'm sure I'm not the only person in this situation; and equally confident there is plenty of incorrect information and confusion about this out there.

Thank you again!

Thank you so much for the clarification.

Could you please elaborate on why the $750,000 cap is in effect?

These are two very different and separate loans (completely independent of each other, I think it is safe to say), with entirely different parties and collateral.

The unit owner's mortgage, originated prior to 2017, with a current balance of $800,000, I would think, should be totally exempt from the $750,000 limit. 

No idea how to deal with the 2021 originated underlying mortgage loan with the owner's share of the current principal due of $200,000.

Thank you very much.

Why doesn't the calculation use $45,000 ($40,000 + $5,000)?

($750,000 / $1,000,000) * $45,000 = $33,750

Also, the $800,000 unit/apt mortgage originated before 2017, while the underlying mortgage origination year is 2021.  Does that affect the $750,000 cap on interest deduction?

THanks!

Could someone please explain the mortgage interest limitations in the case of a NYC Co-Op owner?

For example:

Co-op has 100 units and an outstanding underlying mortgage of $20,000,000 ($200,000 per unit allocated). Owner's share of the interest on the underly mortgage paid in 2023 is $5,000

Owner of (shares and lease to) unit A has mortgage against that unit with a current principal of $800,000. Owner has paid $40,000 in interest in 2023.

The owner is limited to $750,000 in deductible interest.

For the purposes of calculating the limited interest deduction, should the total mortgage debt owed be $800,000 (the mortgage on the individual unit) or $1,000,000 (the sum of the mortgages on the individual unit and the owner's share of the underlying mortgage)?

That is, can the owner deduct $37,500 (750000/800000 * 40000) or $33,750 (750000/1000000 * 45000)?

Of course, I could very well be missing important factors or confused about the whole thing.

Thank you!

Sure could you help on how to best account for this.  

Thank you!

Hi John,

Thanks very much for your help.

I should have mentioned that I own it in a SMLLC (I am that single member).

I will PM you the address now.

Thank you!

Joseph

I am quite confident that the buyer (my LLC) has no obligation whatsoever to the original lender.

The original lender had an enforceable note against the seller, which I bought.

So, given there is no forgiveness issues relating to me or my LLC, how can I maximize my losses, amortization, deduction basis, etc.?

Thank you all!