LETTER: Nevada real estate transfer tax loophole ‘fix’ is anything but
The recently passed bill that would require the payment of real estate transfer tax if a property is shifted to a business entity “for the purpose of avoiding those taxes” is worthless.
First you write a letter to your real estate attorney asking how you can minimize liability with your various real estate holdings. The attorney responds in writing that you should put each holding in a separate limited liability company, so if one property becomes involved in a lawsuit the others are not at risk. Now you have documented why you transferred title to a business entity, and the purpose was not to avoid real estate transfer taxes. I would bet most commercial properties are already in such an LLC for just this purpose.
Now you never have to sell the property and pay real estate transfer tax. All you have to do is sell your ownership interest in the LLC. The LLC still owns the property and someone else owns the LLC.
