If me and a business partner own a piece of real estate, and my partner is behind on taxes, can the IRs lien a property we own as joint tenats, and if so how does this affect me.
2007-02-25 15:02:27 · 4 answers · asked by Scott 2 in Business & Finance ➔ Taxes ➔ United States
Yes, but if they take the property for your partner's back taxes, only his portion of the property can be used to offset his tax bill. Your share would be paid to you if there was a tax sale.
A common way for the IRS to handle this is to put the lien on the property and wait for an ownership change. The lien ensures that when the sale closes, the IRS gets their money. His tax debt would be captured out of his share of the seller's funds at closing and you would walk away with your full share.
The only way that this would directly impact you would be if title passed to you upon his death. The lien would still be there and would still attach to his proportional share of the proceeds upon sale of the property.
2007-02-25 21:26:38 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If your partner is behind on his personal taxes, and the property is owned by the partnership, then you should be safe. If, however, the propery is owned by you and your partner personally (not as the partnership), then the IRS can place a lien on the property. I'd check this with a good IRS attorney.
2007-02-25 15:12:09 · answer #2 · answered by mjkl1 3 · 0⤊ 1⤋
Yes, they can place a lein on it & force its sale. They will get his equity & you will get yours (unless they're after you, too). This is why one should NEVER, never, never, never take a partner.
2007-02-25 15:34:51 · answer #3 · answered by Ryah B 2 · 0⤊ 0⤋
Yes. You could be screwed.................
2007-02-25 15:07:52 · answer #4 · answered by Common Sense 7 · 0⤊ 1⤋