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Irwin Law
Irwin Law, Attorney
Category: Tax
Satisfied Customers: 7415
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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We have formed the LLP. The plane owner will capitalize the

Customer Question

We have formed the LLP. The plane owner will capitalize the LLP with the aircraft. How should the transfer of title from the plane owner to the LLP be handled so sales tax is not charged by the state? Is there a special form to use in this case, as the normal title transfer forms only seem to apply to a situation where the aircraft is sold?
Submitted: 1 year ago.
Category: Tax
Expert:  Irwin Law replied 1 year ago.

Never having done this in practice (and I doubt that you can find a lawyer who has), I'll give you the benefit of an educated guess and a pragmatic solution from an old timer. What you enter on the books of the LLP as the value of the aircraft has nothing to do with the actual transfer forms. Therefore, for the purpose of title transfer, show the purchase price to be one dollar, or a $0 gift if they will let you do that. The partner's capital account will reflect the true value of the contribution.