If my California LLC holds commercial real estate can i sell the LLC with the interest to said real estate property

Asked over 1 year ago - Los Angeles, CA

Before we sell our comercial building in los Angeles which is held by a two member california LLC , can we sell the LLC so the profits of the sell of the real property go to the new owner of the LLC?

Attorney answers (2)

  1. Michael Raymond Daymude

    Pro

    Contributor Level 20

    8

    Lawyers agree

    Answered . You can sell your membership interests in the LLC which could include the commercial real estate. However, if your goal is to escape capital gains tax, I am afraid you will realize it one way or another unless you can find some other way to exclude the gain as, for example, with a 1031 tax deferred exchange. You need the services of a tax attorney or CPA with respect to this issue.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  2. Michael T Millar

    Pro

    Contributor Level 19

    8

    Lawyers agree

    Answered . If I understand your question, you want to know if you can sell the LLC including the real estate it owns. The answer to that question is: Yes. As Mr. Daymude indicates, there may be capital gains tax issues. So, you should include your tax professional in your decision to sell the LLC.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education... more

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