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transfer rental property into an LLC - Landlord Forum thread 326058

transfer rental property into an LLC by Anonymous on October 21, 2014 @12:06

                              
I am in the middle of putting my rental into an LLC in the USA, and I got a few unknown things. I am the sole owner of my rental, and am also sole owner of the LLC.

1) after put into an LLC, would I get some trouble from the federal gov for tax issue? would the rental be treaded as a sale and than I need to pay some kind of capital gain on the sale?

2) after put into an LLC, what about the title insurance? do I need to buy another one?

Thanks for anyone's help here, and have a great day!!!!!!!!!!!!!!
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Re: transfer rental property into an LLC by Anonymous on October 21, 2014 @12:24 [ Reply ]
Laws vary from state to state. Ask your LLCs lawyer.
Re: transfer rental property into an LLC by John Farmer (Florida) on October 21, 2014 @13:19 [ Reply ]
Try forum.freeadvice.com. They can give you a lot of free legal advice.

I would guess it would be treated as a sale. What do you mean "some kind of trouble?"

Talk to your insurance company about that. Probably, since it is a different entity with a FEIN, rather than a SSN.
Re: transfer rental property into an LLC by Bill on October 21, 2014 @15:35 [ Reply ]
You really need to see a lawyer before you gum something up.
Re: transfer rental property into an LLC by anon on October 21, 2014 @17:53 [ Reply ]
Do you own the property without any liens or mortgages on it?
Re: transfer rental property into an LLC by Monica (Ohio) on October 22, 2014 @01:42 [ Reply ]
No, it will not be treated as a sale unless you sell the property to the LLC so no capital gains tax. Why would you need title insurance? You should already know what kind of liens there are on the property if any.

It is totally pointless to transfer your properties into an LLC, the records will show a trail if you are trying to hide asset to protect yourself, it wont work. At the time of purchasing is the time to put the property into an LLC.

Another point to consider, when you have to do an eviction with the property in an LLC, you can not act as a lawyer for your LLC, you will have to hire a lawyer to handle your evictions.

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