transfer property of individual to LLC after purchase?
Are there any legal implications to transferring title of property after purchase to LLC owned by the mortgage holder (individual that purchased property)? I'm confident that this discussion has been had on this forum already and a reference to this information would be greatly appreciated.
Thanks
There may be experts here, but I have been studying this for 2 weeks straight as I am setting up Land Trusts and a LLC to tx rentals to it
The best thing is to do as I understand is to take title in a Land Trust, then you assign it to your LLC
If you do this from the start you will never have held title in your own name thus making it extremely difficult to have the ownership traced to you because it won't show up in public records and transfer of the property will appear that is was conveyed to the L/T
Hi,
Check your state transfer tax laws. Some state make you pay to transfer for the property into certain kinds of trust or into an LLC even if it is for your own benefit. For example here in Pa if you transfer a property into a living trust there is no transfer tax paid, but if you transfer it into a land trust there is a transfer tax to be paid. Yes they are both forms of living trust but there is a distinct difference between them, especially in some states.
Thanks,
Jim - Pgh
I would like to know if anyone know anything about a family deed transfer. I live in Virginia and I live in my uncle house. I have applied for a mortgage on the house and the mortgage broker said that I could do a refi and a family deed transfer anybody have any suggestions on this matter :-? :-? [ Edited by uva378 on Date 04/08/2004 ]
The only "legal implication" that may pop up is taxes. Some states tax will tax you on the transfer of RE into an entity thus, we use a land trust to avoid the tax and assign the beneficial interest. Depending on your state I do not use "land trust" in my documents because some lenders and recorders are unfamiliar with the trust. It will serve you better to refer to your document as a "trust" and omit the word land. If you reside in a state that has a "land trust" statute then you can use the term without fear of rejection or confusion.
[addsig]
How does the tax reporting work if the property is still held in the individual's name but it's operated as a partnership. I see this happen all of the time.
What I mean is if some people get together to form a partnership but when the property is purchased, it is put into one person's name for one reason or another (like for ease in financing).
So... does the individual whose name it is in *have* to put the income, expenses on their own sched E or can it be accounted for through the partnership's 1065 (and related 8825)?
I guess what I'm asking is...does the titling of an asset determine what IRS forms (individual, partnership, corp. etc.) are used to report the income/expenses?