How to transfer my personal shares into my new business tax deferred

[amitm21]

Hello!

First off you guys are great, amazing with the answers given overall.

Question, I have owned 30% of shares in real estate, a building that's an LLC.  This year I created a new business, a USLP, for real estate investment purposes only and I'm the sole person.  I would like to transfer all of my personal shares that was in my name into the new business.  The share title is transferred this month from the LLC to the USLP. 

Now that I'm going to create a new corporate tax return, how do I record or what form do I have to use or to elect to transfer the same real estate investment that I owned into the USLP on a tax deferred basis?   I know in Canada they have something called section (85) rollover but what about here in the states?

Please help! I can't seem to find anything when creating a business then electing to transfer items like investments at cost (ACB).

[Anonymous]

is your nationality Canadian?   a USLP means a United States Limited Partnership (LP).  for there to be a LP there must be at least two legal owners.  You say you are the sole owner  - not allowed.  an LP will have a general partner (many times a corporation) and one or more limited partners.

you need professional advice because transferring the ownership in the LLC to the LP can have tax consequences. we can not answer as to any tax laws that would apply in Canada. from A US tax standpoint there may be some sort of taxation because ownership was transferred from you to a corporation.    Further, have you inquired of the LLC owning the real estate if the transfer of ownership is permitted?   

if you are Canadian you should see this article 

https://www.advisor.ca/investments/alternative-investments/llc-spells-trouble-for-canadians-who-own-... 

[amitm21]

Hello!  

Thank you for the prompt reply!  I'm very happy to see your message. I'm sorry, you're correct on both counts it was my oversight.  It is a USLLP 99% and a US C-Corp at 1% (So 2 new US tax returns). It is for my wife who is a US citizen, so I'm not involved I was only speaking on behalf of her to get the US perspective : )  

Does this help and make the picture clearer now?  Is it possible now to "rollover the assets" (which is just the investments) into her new business?  They are the same investment shares before and after.  The US returns would be then be straightforward to file on TT, except if there's any form or election to file.

Kindly.

[amitm21]

I think it is between Section 351 vs Section 721...