About 5 years ago, our family LLC (Company A) setup another LLC (Company B) for the sole purpose of purchasing my home from the previous owner/landlord to rent it to me. Initially, the home was purchased for $310,000, but has since been depreciated $45,000 yielding a $265,000 tax basis for the home currently.
I would like to purchase the home, but selling the home for anything over $265,000 would trigger capital gains taxes to be paid by Company A.
Is there any way for me to get control of the property and avoid having to pay these taxes in accordance with the tax code? Ultimately, the family business (Company A) would like to give me the property and a loan for up to $310,000, but the tax implications has us stumped.
One last fact: I am a 12.25% owner in Company A (valued around $1,000,000) which owns 100% of Company B.
What would a good Tax Accountant suggest I do??
Thanks.
I would like to purchase the home, but selling the home for anything over $265,000 would trigger capital gains taxes to be paid by Company A.
Is there any way for me to get control of the property and avoid having to pay these taxes in accordance with the tax code? Ultimately, the family business (Company A) would like to give me the property and a loan for up to $310,000, but the tax implications has us stumped.
One last fact: I am a 12.25% owner in Company A (valued around $1,000,000) which owns 100% of Company B.
What would a good Tax Accountant suggest I do??
Thanks.