Posted by Chris on March 10, 2003 at 22:07:30:
I am currently in an LLC that has 24 rental units (three duplexes, one 4-unit, one 6-unit and one 8-unit) and I want to cash out. I have two other partners and we all have exactly 33.333% ownership. The current fair market property values are about 2.4 million (and our total debt is about 1.7 million). Including cash in the bank we have about $750,000 total in equity/cash.
I am looking for a solution that will allow me to get out and take my money and invest into several other business investments (non-real estate) that I would own 100% (NO more partners)!!
The problem is if I do a straight sale / cash out of all the properties uncle Sam is going to take about $80,000 to $90,000 right off the top and I have to believe there is a better way.
Without doing a 1031 exchange into another property that I would own myself (100%), I am stuck as to another option I may have for getting my money without getting hit so hard in taxes.
Any thoughts from the creative pros would be appreciated.
Thanks
Chris
608-835-1791