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CLIENT PURCHASED RENTAL PROPERTY IN TEXAS, FORMED SINGLE MEMBER LLC FOR THE RENTAL IN TEXAS

January 07, 2017 • Marco Ahtirski • Log In to Post Comments

HE SOLD RENTAL PROPERTY IN CA-1031 EXCHANGE FOR PURCHASE 0F RENTAL PROPERTY IN TEXAS,HAS OWN SITE MANAGER AND AN REGISTERED AGENT FOR TEXAS LLC. HE IS STILL LIVING IN CA. DOES HE HAS TO FORM A CA LLC FOR THIS RENTAL ? MUST HE REGISTER AS A REGULAR LLC IN CA, OR AS A FOREIGN LLC FOR CA. THE TEXAS LLC WAS FORMED IN 2016. LAWYER IN TEXAS CLAIMS THAT HE DOES NOT HAVE TO REGISTER AN LLC FOR CA AND PAY THE $ 800.00. CLIENT STATES THAT HE WILL MOVE TO TEXAS AND SHOW PROOF EVEN THOUGH HE GETS A PENSION FROM CA STATE, IF HE DOES MOVE TO TEXAS IN 2017, WHAT WOULD BE THE BEST WAY TO PROCEED. I DON'T BELIEVE HE WILL BECAUSE HE DOES NOT WANTS TO PAY THE ANNUAL $ 800.00, HIS PENSION IS BASED ON DISABILITY AND HE TAXABLE PORTION IS BELOW THE FILING REQUIREMENT FOR CA.WHAT PROOF SHOULD I GET THAT HE IS A TEXAS RESIDENT FOR 2016/2017. HIS MAILING ADDRESS IS A CA P O BOX.PRETTY TRICKY

THANK YOU

MARCO

 

 

 


Comments

He must file a form 3840 with FTB for rental for current and all subsequent years. He does not have to register the LLC in CA unless he wants legal protection here but either way as a resident he must file a 568 and pay the $800 fee. If he moves to Texas he won't have to file as a resident but must continue to file Form 3840 until he disposes of the TX property in a fully taxable transaction.

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