Doesn’t solve the problem of LLCs owning property. I buy a property with an LLC. I then sell the LLC to another individual. Property remains owned by the LLC. No title transfer tax, no fees, etc.
https://www.jdsupra.com/legalnews/congress-passes-corporate-...
The rules don't completely address the problem. For example, I think some buildings are owned by consortiums so that nobody has more than a 50% stake. But that limits their ability to easily make management decisions; there's a cost to that structure. You definitely still see buildings sold out-right, so it's not like every building in California is owned by an LLC just to avoid reassessment.
What I don't understand is why this isn't standard practice for residential properties owned by individuals.
I assume you could use a combination of escrow accounts and collateralized loans to make the transaction mostly indistinguishable from wiring 100% of the money on the day of the sale. (I am not a lawyer or an accountant.)
Most other places re-assess all property values on an ongoing basis and charge you accordingly.
Those reassessments are based on market activity over the preceding year. Property changing hands without actually being a real estate transaction does not generate market data for the assessors to use
This is highly dependent on which state you're in though.
? Tennis is a sport that only people savvy enough to buy tennis balls can play