Expert: Peter Liebert, SIOR - 11/22/2004

Question
I have a possible joint venture for a resort. The potential partner owns land outright in Florida that will be transferred to the new corporation. What closing costs should I expect with such a transfer? (ballpark X per million, for example) What value would be used to compute any taxes? The partner will be bought out completely within a few years with the buyout amount being more than the land would appraise at.  What method would be best to structure this to minimize, or at least delay, any closing related taxes?

Answer
I suggest that you contact an SIOR member (Soc. of Industrial and Office Realtors) in Fla., should be familiar with Fla. & Federal transfer regs. (SIOR.com has a Member Directory). Colliers International also has several offices in south Fla. with investment property specialists.