LLC Registration

[JimM68]

Why? Well, my family lives here. More importantly my wife's family lives here. My business is here, and I don't think it's very sellable.
For about the last year we've talked about moving west. This talk is getting more and more serious lately. Leaning toward the east slope of the rockies, somewhere in Colorado, Denver, Co.Springs, around there. Haven't researched their tax situation or coruption index yet tho.

But back to the subject at hand...
I've had a montana LLC for a year.
I'm in the process of trading up my motorhome.
If the finamcing comes through, I will title my Rv in the LLC and initially at least put montana plates on it.
Doing so will mean I owe a montana sales tax of ZERO.
At some point if it becomes a proble, the montana LLC can transfer title to Illinois, our registration fees are low, and the still montana owned rv can wear illinois plates. As no transfer of ownership takes place, no SALES TAX would be due.

I don't look at taxes as a moral issue. There are laws that govern and control how much tax we pay. It is our responsibility as a citisen to comply with the law. The LETTER of the law. As a business owner, I pay accountants and lawyers and such to ensure I do exactly that. And I eagerly take every single deduction and loophole I can legally take to absolutely minimize my tax situation.

[a k]

At some point if it becomes a proble, the montana LLC can transfer title to Illinois, our registration fees are low, and the still montana owned rv can wear illinois plates. As no transfer of ownership takes place, no SALES TAX would be due.

If that was the case they wouldn't even bother you. They don't care about where it's licensed they want your money.
Watch when you finance an RV with the LLC. That's how the tax man gets involved. If you can,take a second or home improvement on your stick house and pay cash for the RV. Plus you can deduct the interest.

Of course some one's trying to eliminate the deduction.

[a k]

I'm going to give you a "WHAT IF" senario.

I knew I didn't have long, but I wanted to enjoy what time I had left. I have saved and scraped for long enough. I wanted to travel with my wife and two pups. Bought a motorhome paid cash for it. Set up LLC, not to avoid sales or reg taxes. It was meant to avoid (NOT EVADE) estate taxes. You ask why? Because when you go,the tax man estimates your estate tax by NADA retail cost. Not what it's worth. So now I have a motorhome that I origionally paid $209,000 two years ago but now then Nada book says low wholesale is $285,000 retail $335,000.And they go by retail, not wholesale. Now in order for my kids to keep the motorhome they have to pay the IRS 35% of retail price. ($117,250). Now I don't believe that's fair, do YOU? I don't think you could sell it for much more than that, if at all.I put the kids, which all three live in different states, on the LLC as members just as I am. So when they throw the dirt on me, it's still theirs to do as they please. They want to sell it fine. They want to use it, fine. I don't care, but I don't want the Govt to take it from them.
Now you know what it means when the say they are going to take the farm.

And, if I would of went last year instead of this year I wouldn't have had to do it AT ALL thanks to GEORGE BUSH. Don't you think things have changed for the better?



So with this I do close.
When you are on your 5th round of Chemo, the tax man can go screw himself.

A K

[puddinhead]

Originally Posted by a k

I'm going to give you a "WHAT IF" senario.

I knew I didn't have long, but I wanted to enjoy what time I had left. I have saved and scraped for long enough. I wanted to travel with my wife and two pups. Bought a motorhome paid cash for it. Set up LLC, not to avoid sales or reg taxes. It was meant to avoid (NOT EVADE) estate taxes. You ask why? Because when you go,the tax man estimates your estate tax by NADA retail cost. Not what it's worth. So now I have a motorhome that I origionally paid $209,000 two years ago but now then Nada book says low wholesale is $285,000 retail $335,000.And they go by retail, not wholesale. Now in order for my kids to keep the motorhome they have to pay the IRS 35% of retail price. ($117,250). Now I don't believe that's fair, do YOU? I don't think you could sell it for much more than that, if at all.I put the kids, which all three live in different states, on the LLC as members just as I am. So when they throw the dirt on me, it's still theirs to do as they please. They want to sell it fine. They want to use it, fine. I don't care, but I don't want the Govt to take it from them.
Now you know what it means when the say they are going to take the farm.

And, if I would of went last year instead of this year I wouldn't have had to do it AT ALL thanks to GEORGE BUSH. Don't you think things have changed for the better?



So with this I do close.
When you are on your 5th round of Chemo, the tax man can go screw himself.

A K

Estate taxes (Federal) don't start with dollar zero. Unless your estate is north of several million, your kids probably won't have to pay anything. Plus you can do things to limit that by putting their names on assets jointly (MH, checking account, etc.) but in the case of stock, the basis would be at the point of acquisition so if they inherited the stock the basis would be at your point of death, not today, which would be a difference in the amount of capitol gains they would pay. See a good estate attorney to decide how to structure your estate as there is no one solution for everyone. Plus your state may have an estate tax in parallel with the federal tax. And have it reviewed every few years as changes in tax laws can effect you.
Or do what I do, every time I but an expensive toy I just announce that I'm spending my kid's inheritance.

[SteveLevin]

Originally Posted by a k

It was meant to avoid (NOT EVADE) estate taxes. You ask why? Because when you go,the tax man estimates your estate tax by NADA retail cost. Not what it's worth. So now I have a motorhome that I origionally paid $209,000 two years ago but now then Nada book says low wholesale is $285,000 retail $335,000.And they go by retail, not wholesale. Now in order for my kids to keep the motorhome they have to pay the IRS 35% of retail price. ($117,250). Now I don't believe that's fair, do YOU? I don't think you could sell it for much more than that, if at all.I put the kids, which all three live in different states, on the LLC as members just as I am.

That LLC structure doesn't give any estate "protection" at all. None. Zero.

It might make it easier for them not to report it (which is illegal, but in many cases they might not get caught), but it doesn't avoid/defer any taxable event. In fact, if you put them as members of the LLC, you actually create a taxable event at that time since the value of their share of the motorhome almost certainly exceeds the gift limit.

What you want is a trust. Not only is the trust entirely legal, it has significant advantages during your lifetime (for example, your children's liabilities can't impact the ownership of the motorhome).

Steve

[dancogan]

Effective this year, 2011, federal estate taxes only impact estates in excess of $5 million for a single person, $10 million for a married couple. If you will owe estate taxes I'm not going to feel real sorry for you ... sorry.

[a k]

OK all you know it alls. Four people are members of the LLC. One passes on. Who owns the property in the LLC? The titles are all in the LLC's name and any member can sign it and sell it. Any member can disolve it.Trusts are fine but the trusts pays the taxes.

The LLC ain't part of an estate. I don't own it. I'm just a member.

How many of you still think a safety deposit box is safe? Know what happens if you kick? Lock down. Why do you think you get a tax break for the box? So the govt knows you got one.

[akadeadeye]

Originally Posted by RickO

Inquiring minds want to know..... Glenn Frey or Joe Walsh?

[dancogan]

Originally Posted by a k

OK all you know it alls. Four people are members of the LLC. One passes on. Who owns the property in the LLC? The titles are all in the LLC's name and any member can sign it and sell it. Any member can disolve it.Trusts are fine but the trusts pays the taxes.

The LLC ain't part of an estate. I don't own it. I'm just a member....

Not exactly correct. You don't own the property held within the LLC, but you have an ownership interest in the LLC itself. It's just like owning stock in a company. And, as a member, it is part of your estate for federal estate tax purposes.

You are correct - there appear to be a lot of know it all's. But knowing who is correct and who to believe is the key.

[SteveLevin]

Originally Posted by a k

OK all you know it alls. Four people are members of the LLC. One passes on. Who owns the property in the LLC? The titles are all in the LLC's name and any member can sign it and sell it. Any member can disolve it.Trusts are fine but the trusts pays the taxes.

The LLC ain't part of an estate. I don't own it. I'm just a member.

Your participation in the LLC absolutely has a value attached to it for estate purposes. If the holdings of the LLC consist of a motorhome, that value will be the fair market value of the coach divided by your participation in the LLC.

And as I said, when you "add your kids" to the LLC to start, assuming we're talking about a fairly expensive coach, you will have just given them a gift in excess of the $6,000 annual gift allowance, so they will instantly incur a tax liability at that time.

A trust, on the other hand, will own the coach before and after your passing, and the passing of some of the trust's beneficiaries does not trigger a taxable event because beneficiaries do not participate in a trust in the same way a member of an LLC does.

And the LLC and trust are not mutually exclusive. In most cases it's not an issue for a trust to hold a stake in a Montana LLC which owns a motorhome.

And while it's true that most estates are far below the estate tax threshold, in many cases, parents establish trusts to ensure the smooth transition of the estate -- for example, mortgage payments on rental properties, burial fees, etc., that their heirs might not be able to "float" during the legal process.

Steve

[Perry White]

I thought you could give up to $12,000/year without the gift tax kicking in. I'm I wrong?

[dancogan]

Originally Posted by Perry White

I thought you could give up to $12,000/year without the gift tax kicking in. I'm I wrong?

The amount for 2011 is actually $13,000. But unlike prior years, the $5 million exemption for each individual can be used at death or during lifetime. If the gift to any individual exceeds $13,000 during the calendar year a gift tax return will be required, but not necessarily any taxes.

[puddinhead]

Originally Posted by dancogan

Effective this year, 2011, federal estate taxes only impact estates in excess of $5 million for a single person, $10 million for a married couple. If you will owe estate taxes I'm not going to feel real sorry for you ... sorry.

What would a $10 million motor home look like?

I mean one without wings...

[Route 66]

Folks, this thread has wandered off topic in several ways and as result we have removed several posts and edited some.

Please keep on topic about LLCs.