Sale Tax in a Transfer of Assets

Forum|Forum|2 years ago
December 9, 2023
1 reply
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Hi,

I have this situation:

* I am a Sole proprietor transferring the assets to a new Llc (only member) my self . For IRS this transfer of assets is NO sale. But what about Kansas State? Should be a transfer too right? How to do this in the State? I Ask the Vehicles department in town and they said is a sale of Vehicles and have to pay Sale tax.
Is there any process to follow in the state that allow a transfer of assets and not pay sales tax?
Thank you

Not A Product Question

Best answer by Critter-3

Is a Construction company and This year 2024 :

1.- It would be a one member and reporting in Schedule C (1040) because might not be that much income.

2-~ For 2025 we are taking for sure the election for S-Corp. or unless is a good year 2024 we need to take the late election for S- Corp.
3.- Vehicle insurance, Liability, Works-Comp, Payroll will get them under the LLC.

4. Yes we want to reTile the Vehicles and trailers

under the New LLC. and deduct all expenses under the LLC. Because I don’t want to rent them from personal to LLC…. How to do it right? 😞

1.- It would be a one member and reporting in Schedule C (1040) because might not be that much income. Ok ... filing a Sch C doesn't require a change in title.

2-~ For 2025 we are taking for sure the election for S-Corp. or unless is a good year 2024 we need to take the late election for S- Corp. Once you incorporate on the federal level then titleing the vehicle in the corp name is wise.
3.- Vehicle insurance, Liability, Works-Comp, Payroll will get them under the LLC. If the vehicle in in the company name the insurance should also be in the company name along with any loan on the asset.

4. Yes we want to reTile the Vehicles and trailers

under the New LLC. and deduct all expenses under the LLC. Because I don’t want to rent them from personal to LLC…. This is a good idea ... you probably should talk to the DMV about getting the titles changed ... you probably need to sell the asset to the company from the Sch C. Having a bill of sale for the adjusted basis may help get the transfer done. Also talk to your auto insurance company and/or a local tax pro to get more information on this matter.

Anonymous_

Employee

See https://www.ksrevenue.gov/eservices.html

Alexa99Author

Thank you....

Can you please show me where to go exactly??? 🙂

I already call the customer service center few times before, and they always send me to Vehicle Department and they don't know nothing about transfers, they want me to pay Sale tax in order to get a New Tiles for the Vehicles from personal to and LLC.. And also is equipment involved.

I checked and they have information with Closing a Business or Selling a Business, but I could find Transferring with the same owner.