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  • 1.  NY Corporation holding out of state properties

    Posted 12-23-2020 07:52 AM

    We had a NY client do a like kind exchange of a NY corp owned property for a property out of state, in which the exchange lawyer formed him an out of state LLC for the new property.

    I was debating on how to report this as in order to qualify for the exchange, the corp would still have to hold this property. The thing is that it would also be a single member LLC.

    Someone suggested to leave the property as a rental schedule in the corp. The issue with that is that now the out of state (no state tax) LLC is now being taxed on a NY corporation.

    Your thoughts on how you would structure this now?



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    Stephen Hatzistefanidis
    KONSTANTINOS HATZISTEFANIDIS, CPA
    Astoria NY
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  • 2.  RE: NY Corporation holding out of state properties

    Posted 12-23-2020 09:24 AM

    Mr. Hatzistefanidis - I know a way to get like-kind exchange treatment and avoid NY taxes at the same time.  Kindly e-mail me at your convenience - mer@frblaw.com.



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    Matthew E. Rappaport, Esq., LL.M.
    Vice Managing Partner
    Chair, Taxation Group
    Falcon, Rappaport & Berkman PLLC
    (516) 558-3377
    mer@frblaw.com
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    Original Message


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