How do i transfer the gain of a real estate transaction from a corp to a new LLC w/out paying the tranfer tax?

Question

My corporation sold its building located in NYC. I am taking those funds and investing in a1031 exchange. Most likely a NNN property. I need to form a new company and move it out of NYC to avoid the city tax on the income of my new investment. It's my understanding I can tranfer assets from one company to another and avoid the transfer tax provided I follow certain criteria. Is anyone aware of the ins & outs of this process?

Answer 1

Are you serious??? You didn't have a lawyer for this transaction you have to a ask this question here??

Answer 2

confident, you may desire to pay tax on the income. because of the fact which you probably did no longer very own and stay in it for extra advantageous than 2 finished years the section 121 exclusion does not be conscious. because of the fact which you owned it for extra advantageous than a million year it extremely is taxed as an prolonged term capital income with a optimal tax cost of 15% for many taxpayers. in the journey that your AGI is extremely intense that's taxed as intense as 20% yet maximum persons purely isn't in that place. in case you're on the 20 month factor suited now, evaluate the means reductions of as much as $20,000 through staying placed for 4 extra months and then merchandising. Do be extremely helpful that it extremely is a minimum of two finished year from the acquisition date to the sale date. The IRS will nail you in case you omit it, even through sooner or later. What you do with the proceeds from the sale is beside the point. The old rollover alternative rule replaced into replaced almost 2 an prolonged time in the past with the present section 121 exclusion.

Answer 3

It's too late for a 1031 exchange. And it's too late to avoid the city tax on the gain.

In a 1031 exchange you must directly exchange properties, possibly with cash either way, and you get to DEFER the gain on the sale. However if you have already sold the property it is no longer possible to do a 1031 exchange.

Any transfer tax on the real estate transfer will have to be paid in any case.