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

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I am a Florida resident...
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
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Answered in 2 minutes by:
12/1/2010
Tax Professional: Richard, Tax Attorney replied 6 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,808
Experience: 29 years of experience as a tax, real estate, and business attorney.
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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.

 

 

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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.

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