Help Re: Assignment/LLC
My financier & I are planning to do a short sale on a property that is full of mold. We plan to pay an extremely low price, then demo the interior & have the mold remediation done & sell to another investor for them to finish the project.
(I'll use some fake numbers here)
Say we get the property for $10K, put about $20K into repairs & then want to sell the property for $90K...
(My partner is taking title)
After the closing & repairs, can we put the property into an LLC, and assign our interest in the LLC to another investor for 90K and get our money that way? It would save us a lot on closing costs, etc.
Yes you can sell your interest in the LLC. I am not sure the tax implications here since you are selling personal property rather than real property.
My guess is that you would be taxed at your ordinary income rate.
Yes, you can absolutely assign/transfer your interest in the LLC to the buyer. However, the prior poster is correct in that you are assigning/transferring/selling a personal property interest and that may change or affect the way you report the income tax consequences (I am assuming that you and your partner are both members of the LLC). In the event it is a single member LLC, then the single member LLC is considered to be a disregarded entity and the income tax consequences would be the same as if you held title in the single members name as an individual.
[addsig]