Buying and Selling with your LLC?

[Diva77]

Hi. I have a question about what a friend has done over the years with her properties. She has several rental properties and it looks like she has continuously sold them to her own LLCs and then bought them again, essentially just changing the name from herself to her companies every few years. Is this legit? It seems weird/dishonest to me, as she is still the owner each time. How does this work with the banks?

 

[Taxing Matters]

Without seeing all the details of the transactions it is impossible to say if she has done anything illegal. It is not illegal to simply buy and sell a property from your own LLC. But there may be things going on along with that which are illegal.

 

[quincy]

Hi. I have a question about what a friend has done over the years with her properties. She has several rental properties and it looks like she has continuously sold them to her own LLCs and then bought them again, essentially just changing the name from herself to her companies every few years. Is this legit? It seems weird/dishonest to me, as she is still the owner each time. How does this work with the banks?

What is the name of your state?

 

[LdiJ]

Hi. I have a question about what a friend has done over the years with her properties. She has several rental properties and it looks like she has continuously sold them to her own LLCs and then bought them again, essentially just changing the name from herself to her companies every few years. Is this legit? It seems weird/dishonest to me, as she is still the owner each time. How does this work with the banks?

Its a bit odd, but I can think of reasons why someone might do that...particularly if she is trying to protect the assets from creditors.

 

[Taxing Matters]

What is the name of your state?

Or perhaps better in this case, the state(s) in which the friend's properties are located and LLCs organized.

 

[quincy]

Or perhaps better in this case, the state(s) in which the friend's properties are located and LLCs organized.

You're right. That would be better.

 

[Diva77]

North Carolina

 

[Diva77]

Thanks for your comments!