Family Owned apartment complex

[janez87]

my immediate family owns an apartment complex in NY. we elected the business structure as an LLC for tax purposes. we now each have 1/3 ownership. One member collects all the rent and takes care of the property while the other two are in name only. How can you avoid paying taxes on profits you do not actually receive? Can we elect another business structure where we do are not liable for tax on money we actually do not receive.

 

[HomeGuru]

my immediate family owns an apartment complex in NY. we elected the business structure as an LLC for tax purposes. we now each have 1/3 ownership. One member collects all the rent and takes care of the property while the other two are in name only. How can you avoid paying taxes on profits you do not actually receive? Can we elect another business structure where we do are not liable for tax on money we actually do not receive.

**A: consult with a CPA. You should not have individual tax liability but rather the LLC. as the owner of the real property.

 

[janez87]

Home Guru

What do you mean by I should not have individual tax liability but rather the LLC. as the owner of the real property.

Thanks.

 

[HomeGuru]

What did your CPA have to say?