(A) Paul is the sole owner of real property. Paul transfers the real property to an LLC which he is the only member and owner. There is no change in the ownership of the grantee entity (“LLC”) within six-months of the designated transfer.
(B) LLC 1 is the sole owner of real property. LLC 1 transfers real property to LLC 2, a wholly-owned subsidiary. There is no change in the ownership of the grantee entity (“LLC 2”) within six-months of the designated transfer.
(C) Paul and Julie (Husband & Wife) co-own real property. Paul and Julie transfer the real property to an LLC in which they each have a 50 % ownership interest. There is no change in the ownership of the grantee entity (“LLC”) within six-months of the designated transfer.
(D) Anthony and Teresa transfer real property to a Limited Partnership. At the time of formation they will have 2 % ownership as general partners and 98 % as limited partners. One-year after the transfer Anthony and Teresa transfer a 5 % limited partner interest to each of their five children. There is no change in the ownership of the grantee entity (“Limited Partnership”) within six-months of the designated transfer.
(E) Mr. and Mrs. Johnson transfer their home on Lake Superior into their Revocable Trust. There is no change in the ownership of the grantee entity (“Revocable Trust”) within six-months of the designated transfer.
(F) Publicly Traded Corporation ABC transfers real property to a 100 % owned/controlled subsidiary. There is no change in the “control-group” within six-months of the transfer.
When shares or other ownership interests are publicly traded, a “change in ownership” only occurs when the control-group changes; it does not occur upon each transfer of a publicly traded ownership interest.
(G) Entity A, which is owned by three brothers, owns: LLC # 1, LLC # 2, and LLC # 3. LLC # 3 forms SPE LLC and transfers real property to it. LLC # 3 merges into LLC # 2 which sells a 25 % membership interest to a unrelated third-party five months after the transfer.
There is no change in the ownership of the grantee entity (“SPE LLC”) within six-months of the designated transfer.