Flipping Property With Title In Land Trust
OK have a bit of an odd question. I know that I can take title to a property directly into a land trust. Once the properrty is in the land trust can I sell the property by just switching the beneficial interest in the property? For instance the prop is in a land trust with my LLC as the trustee and me as the Ben. I have a rehabber tha I want to flip it to so sell him the house for "x" amount what I paid for it and I change the land trust to show him (or her) as the new ben. Can I do this? and what are the tax conscequences?
Thanks
Joe
If done correctly, there will have been a Warranty
deed to Trustee issued by the seller of the property and recorded at the County Recorder's Office to the designated trustee of the trust. Why not just have the Trustee (in this case your LLC) issue a warranty deed to your buyer and kill the trust? You should pay appropriate taxes on any profits you made from the property.
Well what I am really trying to accomplish is avoiding some of the seasoning issues. My thining was that if I can get the original seller to put the property into trust to me as the ben. and then I sell my beneficial interest to the rehabber, then a uninterrupted title would show and avoid seasining issues when I or the rehabber go to resell the property.
Joe