My sisters and I have an LLC,?
We are the only members and we have a house in this LLC which is mortgaged and under all three names. One of us wants buy out the other 2 shares of the house. How would we do this seeing that it is in an LLC and mortgaged. Can that sister just take over the LLC and the mortgage and ownership of the house?
- Lauren FLv 71 decade agoFavorite Answer
You should get the assistance of a real estate attorney and a tax advisor. Technically, what you want to do is fine. The hard part is figuring out how to divide up the proceeds of the sale, calculate the gain on the value of the house, and report the transaction to the IRS.
You want to make this a formal, legal transaction, because say sister #1 is the only one making payments (assuming she thinks she is building this as a business). If she doesn't have sisters #2 and #3 relinquish their ownership rights to the property, #2 or #3 or both could later claim to have some ownership of the value #1 built up.