rental CA LLC fee - Spidell

rental CA LLC fee

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Message Board rental CA LLC fee

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    • #274768
      Anonymous
      Participant

      For california LLC who holds rental property, if they sell the rental property within the llc, they will need to pay the llc fee. How do they usually avoid the LLC fee? Do we suggest client to get the title out of the llc and transfer to personal and sell it under personal name? Or do we elect the LLC to be a S corp in the year when they sell it? Thank you so much for your help!

    • #274799
      Lynn Freer
      Participant

      You could take it out of the LLC and into the owners’ names a tenants in common. Don’t know if the FTB will try to go after the t/p.. But that’s probably a better route than the S corp where you will incur tax at the S corp level when the property is sole

    • #275195
      Anonymous

      Did you encounter any of your clients use this strategy and the receive a notice from the FTB? tks!

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