{"id":10356,"date":"2021-02-10T08:02:47","date_gmt":"2021-02-10T13:02:47","guid":{"rendered":"http:\/\/privacyfight.io\/?p=10356"},"modified":"2023-06-23T13:20:08","modified_gmt":"2023-06-23T17:20:08","slug":"u9-pma-residency-tax-withholding-liability-on-sale","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u9-pma-residency-tax-withholding-liability-on-sale\/","title":{"rendered":"U9 \u2013 PMA &#038; Residency &#038; Tax\/Withholding Liability on Sale"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10356\" class=\"elementor elementor-10356\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0f2d6e7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0f2d6e7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d7a0fe3\" data-id=\"d7a0fe3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-41a4833 elementor-widget elementor-widget-text-editor\" data-id=\"41a4833\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/716093687\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            U9 \u2013 PMA &#038; Residency &#038; Tax\/Withholding Liability on Sale\r\n0:01\r\nHi everybody. This is John Jay and I wanted to cover something.\r\n0:05\r\nIt was it\u2019s an example use of a private membership association that owns a limited liability company and I\u2019m going to show you over time different specific app&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U9 \u2013 PMA &#038; Residency &#038; Tax\/Withholding Liability on Sale<br \/>\n0:01<br \/>\nHi everybody. This is John Jay and I wanted to cover something.<br \/>\n0:05<br \/>\nIt was it\u2019s an example use of a private membership association that owns a limited liability company and I\u2019m going to show you over time different specific applications. Now this example I\u2019m going to show you just came up.<br \/>\n0:19<br \/>\nIt wasn\u2019t something that any one of us had planned for, but it shows you what the versatility that you can have using this type of structure. And again, I want to remind you that just because I like to use a PMA, doesn\u2019t mean you can\u2019t use something else, but the same concept.<br \/>\n0:33<br \/>\nSo, just follow along, OK.<br \/>\n0:34<br \/>\nSo, the first concept is: that residency creates eligibility under the statute. Residency, generally, I\u2019m talking about residency in a state.<br \/>\n0:47<br \/>\nIf I, if I live somewhere for more than six months, I\u2019m considered a resident there, if I, if, even if I\u2019m renting something and my name is not on the property.<br \/>\n0:58<br \/>\nIf I leave that location, and I go to another state, on vacation for a week, I\u2019m not, I don\u2019t become a resident of that particular location in the other state, because I\u2019m just basically, I\u2019m temporary. I\u2019m a tourist, OK?<br \/>\n1:13<br \/>\nSo, Residency is established a lot of times by public records, but also by what you do, and also buy what you\u2019re eligible for.<br \/>\n1:22<br \/>\nSo, a resident of a state is eligible to pay taxes, so, Well, that\u2019s why I say, Residency creates eligibility, but then eligibility does create liability, So here\u2019s a slick way that this can work in your advantage.<br \/>\n1:38<br \/>\nIn this example, a person has a limited liability company in a state.<br \/>\n1:45<br \/>\nOutside of the state where the limited liability company owns real estate.<br \/>\n1:51<br \/>\nSo, the real estate is situated in a place where the limited liability company is not registered, it\u2019s a, it\u2019s a foreign LLC by definition.<br \/>\n2:02<br \/>\nAll right, so I\u2019m gonna pop back and forth between some screens that I\u2019m going to show you, goes on with the title company.<br \/>\n2:09<br \/>\nBecause what\u2019s happening is, the title company is trying to identify residents or non residents having as having certain types of liabilities or tax liability.<br \/>\n2:21<br \/>\nNow, I don\u2019t care about a tax liability.<br \/>\n2:24<br \/>\nAll I\u2019m trying to do in this example here is move A 10 99 report to a pass through entity. So it is not in my name.<br \/>\n2:35<br \/>\nAnd I\u2019m also trying to avoid withholding of taxes.<br \/>\n2:40<br \/>\nSo, if you know, if I can avoid withholding, then I don\u2019t have to file a return and try to rectify that and so forth.<br \/>\n2:47<br \/>\nSo the first example here, this is, this happens to be, you know, Wisconsin realtors association. Notice how it\u2019s an association, OK? The association is trying to identify and create possibly a tax liability for somebody.<br \/>\n3:01<br \/>\nSo, let me just do a share screen here.<br \/>\n3:09<br \/>\nOK.<br \/>\n3:12<br \/>\nI\u2019ve got about four files to share with you.<br \/>\n3:14<br \/>\nSo what we\u2019re looking at here is the what\u2019s called the seller certification of non foran status.<br \/>\n3:21<br \/>\nSo a foreign status of a seller of real estate would likely require it leads to withholding if not a tax situation.<br \/>\n3:32<br \/>\nSo if a foreign LLC to a state where property is situated is selling the property in that state, there\u2019s a there\u2019s a different kind of tax, OK so if you\u2019ll see here, you\u2019re going to make a certification, that\u2019s what they want you to do because that transfers the liability onto you.<br \/>\n3:49<br \/>\nSo we want to look at what conditions they\u2019re trying to discover if the seller is a foreign person, OK.<br \/>\n3:57<br \/>\nWe\u2019re saying that it\u2019s not a foreign person. Now, here\u2019s what\u2019s interesting.<br \/>\n4:02<br \/>\nThe limited liability company is a foreign person and it does own the property.<br \/>\n4:07<br \/>\nBut think, think this through. We\u2019re gonna, we\u2019re gonna get to the form here in just a second, but that shows this.<br \/>\n4:13<br \/>\nThe determination of foreign status can be established with the owner of the LLC.<br \/>\n4:22<br \/>\nIf we\u2019re using the LLC as a disregarded entity, we can say it\u2019s a disregarded entity or we can say it\u2019s something else. We can use it however you want. In this particular situation, we can simply say it\u2019s a disregarded entity by whatever rules standards apply here. I don\u2019t really care what they are, because it\u2019s going to be called. It\u2019s going to be regarded as a disregarded entity and anybody that looks at this, these records is going to agree.<br \/>\n4:45<br \/>\nSo you\u2019re not there\u2019s no trick here, OK.<br \/>\n4:48<br \/>\nThe seller\u2019s address I like to use a local address for my foreign person.<br \/>\n4:56<br \/>\nSo, again, it\u2019s a foreign LLC, but I\u2019m going to use the property address as the address of the LLC.<br \/>\n5:02<br \/>\nI don\u2019t have to I\u2019m just going to do it that way.<br \/>\n5:07<br \/>\nThey may report to the IRS, whoop, Dee Doo.<br \/>\n5:10<br \/>\nAnd, of course, they want to scare you with penalties of perjury. We always want to tell the truth, OK?<br \/>\n5:14<br \/>\nSo this is the title company who\u2019s trying to get your certification, your promise.<br \/>\n5:21<br \/>\nIt\u2019s a foreign person or not, who is selling the property, they, they refer to the seller as the transfer, or, OK, now I\u2019m gonna, I\u2019m gonna get out of here, and I\u2019m going to take you to, another example, an additional form that may come your way in a closing or real estate closing.<br \/>\n5:43<br \/>\nAll right. When get ahold of my cursor, here we go, all right.<br \/>\n5:47<br \/>\nNow, this, or here we go. This is.<br \/>\n5:54<br \/>\nHere we go. You can see it\u2019s first American. It just happens to be all title companies are pretty much going to do this.<br \/>\n6:00<br \/>\nSee, it says here.<br \/>\n6:01<br \/>\nIt\u2019s going to give the form two to the iris give form to requester. So somebody\u2019s telling the title company to do this.<br \/>\n6:09<br \/>\nDon\u2019t send this to the IRS.<br \/>\n6:11<br \/>\nThis just looks like, see, look at this. It looks like an official government form, doesn\u2019t it?<br \/>\n6:16<br \/>\nDoes it look like your W nine?<br \/>\n6:22<br \/>\nThis is pretty slick.<br \/>\n6:23<br \/>\nSomebody altered this form to make it look like an official form so they can collect data.<br \/>\n6:28<br \/>\nSo people will be inclined induced into filling out this form. So be careful here. Look at the top.<br \/>\n6:35<br \/>\nLook what we got.<br \/>\n6:36<br \/>\nSince when does the government, it included the emblem of a private business on its data collection forms.<br \/>\n6:44<br \/>\nthis is not a government form.<br \/>\n6:46<br \/>\nit used to be possibly it\u2019s been altered.<br \/>\n6:50<br \/>\nThe reason why this is important is because this form is not approved by the Office of Management and Budget. It\u2019s not an official form. It cannot be used to collect information That is then remitted to the government unless you agree to it.<br \/>\n7:02<br \/>\nAnd this is being requested through a private party. So everybody\u2019s off the hook.<br \/>\n7:05<br \/>\nAnd if you don\u2019t know what you\u2019re doing, so never never, in my opinion, I don\u2019t think you should ever sign a form where it\u2019s a private data intake collection form, where it\u2019s under penalties of perjury.<br \/>\n7:20<br \/>\nOK, don\u2019t do that, and I\u2019ll explain how to deal with this, alright?<br \/>\n7:24<br \/>\nBut if you\u2019ll notice, they\u2019re talking about disregarded entity.<br \/>\n7:29<br \/>\nNow how do we get to this form? I\u2019m going to show you another.<br \/>\n7:32<br \/>\nI\u2019m going to pop out of here again.<br \/>\n7:35<br \/>\nAnd I\u2019m going to show you kind of how we arrived at receiving this from the title company.<br \/>\n7:43<br \/>\nI know this may seem tedious, but, so this kind of system wherein.<br \/>\n7:49<br \/>\nAll right, Now, this was received first.<br \/>\n7:54<br \/>\nYeah.<br \/>\n7:57<br \/>\nNext slide, this over here.<br \/>\n8:00<br \/>\nI don\u2019t like to look sideways, OK, I see it\u2019s form, OR 18.<br \/>\n8:05<br \/>\nOR is Oregon, Revised Statutes or Oregon, something.<br \/>\n8:10<br \/>\nOregon real property.<br \/>\n8:12<br \/>\nSo you\u2019ll notice that one of these is from Wisconsin.<br \/>\n8:14<br \/>\none is from the American title, one is from Oregon, it doesn\u2019t matter.<br \/>\n8:18<br \/>\nYou\u2019re gonna have similar things go on, but they\u2019re all going under a particular statute, the statute has the same language if they wanted to determine if the seller of the property is foreign a foreign person and then it\u2019s either going to withhold taxes or it\u2019s going to send you a tax bill, OK.<br \/>\n8:35<br \/>\nWe\u2019re going to avoid both situations.<br \/>\n8:38<br \/>\nSo again it\u2019s asking for the transfers information. So here\u2019s how we have this setup lambertson LLC that\u2019s foreign to where the property the real estate is situated and it\u2019s owned by a private membership association.<br \/>\n8:50<br \/>\nSo the private membership association can have residency anywhere. It depends on what you do because you\u2019re the boss, right?<br \/>\n8:56<br \/>\nYou signed for the PMA, so for all anybody cares it\u2019s a resident where the property is situated so the beneficial interests reside with the owner of the LLC in the state or jurisdiction where the property is situated.<br \/>\n9:12<br \/>\nThat makes the transaction being undertaken by a resident.<br \/>\n9:17<br \/>\nSo this is why we get into this it\u2019s information here.<br \/>\n9:21<br \/>\nSee, this form is for a non resident individual.<br \/>\n9:27<br \/>\nWell, if I don\u2019t understand what I\u2019m doing, well, I\u2019m gonna look at my LLC and say, yeah, that\u2019s an organized in a different state, so therefore, it must be a non resident individual. It\u2019s not registered with the state where the property is located.<br \/>\n9:37<br \/>\nWrong.<br \/>\n9:38<br \/>\nBecause we\u2019re going to treat the LLC as a disregarded entity, which means the residencies established by the PNA and what determines its residency you do, by what you do by what you say.<br \/>\n9:51<br \/>\nIf you needed some documentary evidence, you can just create that as needed. It\u2019s not fraud. This is just how things are done.<br \/>\n9:58<br \/>\nUm, by the way, when you declare residency somewhere, the moment you declare it in the public, you\u2019re a resident there.<br \/>\n10:07<br \/>\nThis is just standard, standard, law firm, for years, and years, and years, it\u2019s always been that way. You can do it formally with a public record, you can do it verbally, you just announce it to the public. All right?<br \/>\n10:17<br \/>\nThis form is not the proper form for my owner, OK? Of the property.<br \/>\n10:23<br \/>\nSame thing here, it is not a C corp, So none of these conditions apply, be careful.<br \/>\n10:31<br \/>\nYou scroll down here.<br \/>\n10:34<br \/>\nNotice got all these parts, Part D, Part E.<br \/>\n10:39<br \/>\nAnd look at the bottom.<br \/>\n10:41<br \/>\nyou get a sign under penalty of perjury.<br \/>\n10:43<br \/>\nNot this form does not apply to the seller or the transfer, or you are not to sign this.<br \/>\n10:48<br \/>\nYou have to remember you have to be diligent just because someone gives you a form to fill out.<br \/>\n10:54<br \/>\nDon\u2019t just sign it, don\u2019t be intimidated either. These people cannot tell you how to manage risk.<br \/>\n11:00<br \/>\nAnd I\u2019ll explain how we communicate that, because I have a cover letter that spells all this out.<br \/>\n11:05<br \/>\nSo.<br \/>\n11:08<br \/>\nThese forms don\u2019t apply.<br \/>\n11:11<br \/>\nThe altered W nine is not something you\u2019re going to complete. The only the only form you want to complete, which is going to help you, is that seller certification. That I referenced earlier, the first, the first one. I\u2019m gonna go back to that real quick.<br \/>\n11:27<br \/>\nOK, so really, it\u2019s the seller certification.<br \/>\n11:38<br \/>\nAll right.<br \/>\n11:43<br \/>\nIt\u2019s running away from me.<br \/>\n11:50<br \/>\nThis is fine. You want to give this information out because it will establish that it has no liability, right.<br \/>\n11:58<br \/>\nSo, here\u2019s what you\u2019re going to say. Basically. I am.<br \/>\n12:01<br \/>\nI filled out these forms OK, for this example so that I can arrive at summarizing what I filled out to the title company. That way, the title company gets to do its job.<br \/>\n12:15<br \/>\nIt\u2019s not going to be deficient in any forms and then believe it\u2019s going to have to withhold. I want to make sure that the title company is not going to withhold just out of fear of doing the wrong thing.<br \/>\n12:23<br \/>\nSo, I\u2019m going to show you the cover letter.<br \/>\n12:28<br \/>\nNot only did I fill out the correct correct forms and not fill out the forms that don\u2019t apply, be very careful on that.<br \/>\n12:38<br \/>\nUm, I did a cover letter, so that we\u2019re all covered.<br \/>\n12:43<br \/>\nWe\u2019re all on the same page, hopefully, if they\u2019ll read the cover letter, they\u2019ll read it.<br \/>\n12:50<br \/>\nI\u2019m explaining what\u2019s going on here, so.<br \/>\n12:56<br \/>\nD I\u2019m writing to the Title Company Refering about referencing the form, they want me to fill out, OK, and their certification. I just put forms here because I was too lazy, It doesn\u2019t matter. They know what I\u2019m talking about.<br \/>\n13:08<br \/>\nSo I did the seller certification, OK.<br \/>\n13:12<br \/>\nNow here\u2019s what it says, based on the selections I made the seller, my LLC.<br \/>\n13:17<br \/>\nIt\u2019s a disregarded entity.<br \/>\n13:19<br \/>\nThe sole owner is what I happen to call the PMA, it could be John Smith or whatever you wanna call, it doesn\u2019t matter whatever you called your \u2026<br \/>\n13:26<br \/>\nthat is going to be the transfer.<br \/>\n13:28<br \/>\nOr as they say, it\u2019s not a foreign person because I said so.<br \/>\n13:35<br \/>\nAnd the EIN is stated on the official W nine form.<br \/>\n13:39<br \/>\nSo I did not fill out the altered W nine.<br \/>\n13:42<br \/>\nI went and got into a recent W nine off the internet, I just searched on IRS Form W nine, PDF, OK, Do that. Don\u2019t use their Altered Form and here\u2019s why.<br \/>\n13:54<br \/>\nRegarding this form, they want me to fill out, OK, I told him, be advised that the owner of the residence at the property, which is the LLC, that\u2019s the title holder, OK?<br \/>\n14:02<br \/>\nIt\u2019s not the beneficial owner, it is a non resident individual.<br \/>\n14:07<br \/>\nIt is.<br \/>\n14:11<br \/>\nIt\u2019s, well, I\u2019m sorry, it is not a non resident individual.<br \/>\n14:14<br \/>\nWhy is it not a non resident individual double negative? Why is it a resident individual because we\u2019re saying it\u2019s a disregarded entity and that the owner is a resident of the state where the property is situated.<br \/>\n14:27<br \/>\nI know I\u2019ve said that before, I hope.<br \/>\n14:29<br \/>\nThis is kind of getting clear here.<br \/>\n14:32<br \/>\nIf I didn\u2019t use the PMA and identify it as a resident of where the property is sexual situated, I couldn\u2019t say this.<br \/>\n14:39<br \/>\nThe LLC is a non resident, but my PMA is not a non resident, OK?<br \/>\n14:47<br \/>\nSo it doesn\u2019t qualify for all these forms.<br \/>\n14:53<br \/>\nIt\u2019s not a C corp, obviously.<br \/>\n14:56<br \/>\nAye.<br \/>\n14:59<br \/>\nSometimes the title company will send you these forms under penalty of perjury, and they\u2019ll highlight the signature line. They they just want you to sign it. Because they\u2019re just like robots. They\u2019re not really thinking. They don\u2019t care. Anyways. They\u2019re just doing what they\u2019re told them. They\u2019re afraid to do the wrong thing.<br \/>\n15:12<br \/>\nSo here\u2019s what you tell him.<br \/>\n15:14<br \/>\nYou might be liable for what\u2019s called sub nation of perjury, if I sign these forms, under penalties of perjury, as the seller, does not satisfy the criteria set forth in the forms.<br \/>\n15:25<br \/>\nNow, I\u2019ll explain that.<br \/>\n15:28<br \/>\nIf someone in an official capacity who\u2019s acting in behalf of the tax collector, a title company, even though maybe he\u2019s not authorized, but let\u2019s not talk about that, tells you to sign something under penalty of perjury.<br \/>\n15:43<br \/>\nOr else the implication is or else I\u2019m going to withhold your money or something like that.<br \/>\n15:49<br \/>\nIf you fill out the form, and it\u2019s not the proper form, you should know if it is or not.<br \/>\n15:54<br \/>\nYou fill out the form under penalties of perjury.<br \/>\n15:57<br \/>\nIt may be false.<br \/>\n15:59<br \/>\nYou may be making false statements, especially if you fill out, if you just sign the form and leave everything blank, who knows what somebody else may write in there, OK?<br \/>\n16:06<br \/>\nYou\u2019re responsible for that.<br \/>\n16:08<br \/>\nSo don\u2019t fill the format. If it doesn\u2019t apply to you, don\u2019t make false statements under penalties of perjury.<br \/>\n16:14<br \/>\nBut if you did that, the person who told you to do it or else is actually the person who\u2019s liable for perjury, because he or she used, as official capacity, to tell you to do this or else, OK.<br \/>\n16:28<br \/>\nNow, Subornation means, while you committed perjury, the person who ordered you to do that actually was liable for perjury.<br \/>\n16:37<br \/>\nThat\u2019s what sovereign nation of perjury means.<br \/>\n16:39<br \/>\nIt\u2019s a similar it\u2019s the same penalty as if he lied under oath because you lied under oath, because he told you to OK.<br \/>\n16:45<br \/>\nSo this I say it this way, because now this person who is an order follower is going to look at that and say, whoa, there\u2019s a bigger liability here.<br \/>\n16:54<br \/>\nIf I do this, dinner fi, do what I\u2019m being told. So apparently what I\u2019m being told is incorrect.<br \/>\n16:59<br \/>\nI don\u2019t want to accused of perjury. I like to tell the truth, right? So you want to convince and persuade them that it\u2019s a problem for that person if you do this.<br \/>\n17:08<br \/>\nSo then I go and explain about the W nine and the cover letter.<br \/>\n17:12<br \/>\nSo the end of the company is, and I put the number in there, two digits dash, but ever 70.<br \/>\n17:19<br \/>\nI did include the W nine, the actual real offical OMB approved W nine. I did not complete your altered version as it\u2019s not approved by the Office of Management and Budget Budget. It does not have an approved OMB number. You can look this up.<br \/>\n17:33<br \/>\nIt\u2019s very significant, OK.<br \/>\n17:38<br \/>\nTherefore, the owner is not able to complete this form due to its not not being eligible. The owner is not eligible to complete this form.<br \/>\n17:47<br \/>\nIt\u2019s not an official form to collect that data.<br \/>\n17:50<br \/>\nTherefore there is no withholding obligation.<br \/>\n17:52<br \/>\nThat\u2019s the end result here who cares, who gets the 1099? You\u2019ve already covered that. The title holder is going to get the 1099.<br \/>\n17:58<br \/>\nYou just don\u2019t want to be taxed as a non resident and because you, your PMA is what it is that handles that matter.<br \/>\n18:07<br \/>\nNow you could individually be the owner, know the beneficial owner save your PMA, So just keep that in mind, I like to use the PMA.<br \/>\n18:17<br \/>\nThen of course I always tell him.<br \/>\n18:19<br \/>\nLook, guys, I\u2019ve already got people advise me about what my liabilities are and how to manage them and what my tax consequences are. I don\u2019t need you telling me anything about tax information. I can handle that myself.<br \/>\n18:29<br \/>\nYou do your job and I\u2019ll do my job, right?<br \/>\n18:32<br \/>\nSo that\u2019s another benefit of using the PMA.<br \/>\n18:36<br \/>\nYou\u2019ll be able to handle situations like that once you understand how this strategy works in different situations.<br \/>\n18:44<br \/>\nBut I hope that helps.<br \/>\n18:46<br \/>\nIf you ever run into that situation, you\u2019ve got a video here.<br \/>\n18:50<br \/>\nAnd hopefully I\u2019ve covered everything. I think I have.<br \/>\n18:54<br \/>\nWe\u2019re going to cover more of this stuff.<br \/>\n18:57<br \/>\nAll right.<br \/>\n19:02<br \/>\nAll right, thanks for watching.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b7defe0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b7defe0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7bfa378\" data-id=\"7bfa378\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a408c0d elementor-widget elementor-widget-spacer\" data-id=\"a408c0d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b681d57 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b681d57\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-749f33c\" data-id=\"749f33c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b767e76 elementor-widget elementor-widget-text-editor\" data-id=\"b767e76\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. The speaker, John Jay, discusses the use of a Private Membership Association (PMA) owning a Limited Liability Company (LLC) as a tool for managing tax liabilities.<br \/>2. Residency, according to John, creates eligibility under the statute and thereby potentially leads to tax liability. <br \/>3. The LLC&#8217;s residence is in a different state from where the owned real estate property is situated, making it a foreign LLC by definition.<br \/>4. John emphasizes how the title company tries to identify residents or non-residents to assess certain tax liabilities.<br \/>5. In the given scenario, the speaker is aiming to move the tax liability to a pass-through entity (the LLC) to avoid having the tax burden in his name.<br \/>6. The speaker underlines that a foreign LLC selling property in a state may lead to different tax implications and certification requirements.<br \/>7. The LLC is treated as a disregarded entity, meaning its tax liabilities pass directly to its owner (the PMA) which can be considered a resident of the property&#8217;s state.<br \/>8. The speaker highlights the importance of understanding and carefully reviewing any documents and forms associated with the property sale, as incorrect or uninformed completion could potentially lead to unwarranted tax liability.<br \/>9. John provides specific examples of documents to be wary of, including a seemingly official but actually altered government form used for data collection.<br \/>10. Lastly, the speaker underscores the importance of ensuring that all information provided is accurate and not signing any documents under penalties of perjury if the information is not applicable.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-609d0a2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"609d0a2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-be13b25\" data-id=\"be13b25\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U9 \u2013 PMA &#038; Residency &#038; Tax\/Withholding Liability on Sale<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/10356"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=10356"}],"version-history":[{"count":6,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/10356\/revisions"}],"predecessor-version":[{"id":25170,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/10356\/revisions\/25170"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=10356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=10356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=10356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}