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Notestine Law: Hot Topics: Tax Impact on LLC's will change July 1, 2009

Saturday, June 27, 2009

Tax Impact on LLC's will change July 1, 2009

The Tennessee General Assemby recently enacted just before the end of the current session, a " Technical Corrections Bill". This statute modified the family-owned noncorporate entity exemption under Tennessee tax law. The exemption will no longer apply to rent from industrial and commercial property and some farm property. An exemption still exists if the entity elects by October 1, 2009 to waive the limited liability protection granted by statute. Another option is to convert the entity to a limited partnership. At this time it appears that family owned entities receiving substantally all of its income from residential real property will be exempt as long as the property owned by the entity has no more than four residential units on it. I will post any additional information I receive on this new statute as soon as it becomes available. At last notice this bill was waiting on the Governor's signature.


Attention: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Not certified as a Real Estate or Business Law specialist by the Tennessee Commission on Continuing Legal Education and Specialization. Certification in these areas of law are not currently available in Tennessee.

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