All Forum Posts by: Robert Foster

@Dave Foster This confirms much of what I have learned. Thanks for the feedback! 

I think I posted in the wrong category before so reposting here...

Hello BP,
I am currently in a partnership with 5 members on a mobile home park located in CA. The ownership is organized as an LLC. Preparing for the future, when it is time to sell, I have recently learned that it would be best to be organized as Tenants in Common with the LLC acting as the property manager. This would keep the current operating plan the same, but allow for the partners to qualify for a 1031 exchange as well as go separate ways if they choose. My questions are; who facilitates establishing the new operating agreement as Tenants in Common? How are taxes reported under the Tenants in Common structure? My understanding is the members file independently as 1099 instead of receiving a K1. Any feedback is appreciated!

Hello BP, 

I am currently in a partnership with 5 members on a mobile home park located in CA. The ownership is currently organized as an LLC. Preparing for the future, when it is time to sell, I have recently learned that it would be best to be organized as Tenants in Common with the LLC acting as the property manager. This would keep the current operating plan the same, but allow for the partners to qualify for a 1031 exchange as well as go separate ways if they choose. My questions are; who facilitates establishing the new operating agreement as Tenants in Common? How are taxes reported under the Tenants in Common structure? My understanding is the members file independently as 1099 instead of receiving a K1. Any feedback is appreciated!