How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55136
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

I am a Florida resident. Several years ago, a friend (resident

Customer Question

I am a Florida resident. Several years ago, a friend (resident of Florida), my son in New Jersey, and I purchased two lots in Lehigh Acres, Florida hope to sell the property. We purchased the pr?

perty for $80,000. My friend paid $40,000, my son and I paid $20,000 each. The property is currently valued at about $6,000. Our annual expenses including real estate tax is less than $500. Should I recommend that we set-up a partnership with the three of us? Also, if I sometime in the future sell my part of the real estate to either my friend or my son based upon certified appraised value will I be able to take a tax loss and will the partnership change.
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good afternoon. Yes, ownership of this asset would be best held in an entity for purposes of ease of management, transfer of interests, and liability management. I would recommend you form a limited liability company rather than a general partnership to limit your liability. The LLC will be taxed as a partnership. Yes, if you later transfer your interest in the LLC, you will be entitled to a loss.



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.