I'm selling my interest in a U.S. LLC that owns real estate — does FIRPTA apply to the sale of my LLC membership interest?
I own a 30% membership interest in a Florida LLC that holds two apartment buildings. I want to sell my interest to another investor (who is a U.S. person). The LLC itself isn't selling the properties — I'm just selling my ownership stake in the LLC.
Does FIRPTA apply here? I thought it only applies when the actual property is sold, not when someone sells their interest in the entity that owns the property. My co-members say I'm wrong. Who's right?
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