BM Hiding Real Estate?
@PaulaDC sbm bbm "Safely hidden under that non profit"??? Maybe I'm imagining something waaay different than ^ post contemplates.
First why would BM want to hide this prop or other r/e? Hide from whom? Spouse, offspring, in-laws, other family, a criminal mob, drug lords, IRS, DEA, other LE or gov't entities, business or personal creditors, bankruptcy courts?
If BM wants to hide this prop by transferring title to SMHope Fdtn., to cover some nefarious actions, all he has done is turn the
spotlight on himself, imo.
Ok, sign a deed to convey ownership of PP prop to the fdtn? A
deed that has to be
recorded in a county office, where
LE of every stripe and the
public can see it? Beyond BM signing his John Hancock on the deed, typically r/e closings require Seller/grantor and Buyer/grantee to provide info, like, oh, for example,
Soc Sec. numbers. Some info from r/e transactions is sent to IRS and state tax/revenue departments.
Does BM want to claim his transfer of prop to the fdtn was a
gift? On BM's next fed inc tax
Form 1040, does he plan to itemize deductions on
Schedule A, claim a contribution to SMHF, a 501(c)(3) organization? If $1,500,000 was amt (I've forgotten) they paid for prop, then that is his cost basis, and deduction for that particular gift is limited to that amt., not the fair mkt value at time gift is made. Next, IRS imposes limits on how much a donor can claim (iiuc, could be wrong), 30 % 0r 50% of donor's adjusted gross income/AGI. Not a tax credit, where $1 of tax liability is offset by $1 tax credit. What is his/their income, just asking rhetorically? Claiming a gift may not be so advantageous as it may first appear.
Now onto SMHF which would
(in this hypo discussion) own the prop. Assuming SMHF's
board of directors and some hypo future employee(s) are mere puppets bowing to his tyrannical control, and they nod their heads saying yessir to selling the PP prop, then what? Would a buyer pay $ 1,500,000 for a home without a title insurance company issuing a title insurance policy? Seems a sale would tend to go thru legit connections w r/e agent/broker, title ins co, likely buyer's lender, et al. Ok, sale closes; proceeds are paid to SMHF. Then
how is $$ returned to BM? Salary paid to him as fdtn employee, which would be taxed as earned income, so higher tax rate & than if he had sold PP prop, like most anybody else. Or how would $ used to his advantage?
I cannot imagine how anyone in BM's shoes would try to
hide prop like this. Or why.
Maybe I am too far back in the cave or too far up in the stratosphere.
jm2cts
------------------------------------------------------------------------------------------------------------------------
** https://www.irs.gov/pub/irs-pdf/p526.pdf page 15
