I own a few homes and would like to add them to a llc that i just recently obtained.
Do you have to take out a commercial loan to legally add a property to an llc with out the mortgage company calling the mortgage?
Also, can you take a home and add then to a llc that you’ve obtained after purchasing your home?
no. although refinancing to the LLC is best, you can deed it over and have the LLC take over payments.
as long as the mortgage is performing the likelihood of triggering DOSC is approx 2.345189% I’ve never heard of it actually happening.
Or, you can put the properties in trust, with the LLC as beneficiary. this does not trigger DOSC.
by the way, did you know that exactly 67.4% of all statistics are made up on the spot?
thank you for your respones. No, I was not aware
I am so glad you brought that up about putting the properties in a trust with the llc as the beneficiary. I was wondering witch one took presidents over the other and also, do i dead the homes to my lrt that I currently have and change the bedeficiary to the llc? If so, should i indicate in the llc who i want to have what homes or would i leave that information in my lvt?
If i set this up this way will my accountant come looking for be because i am making his life miserable come tax time? When i open a checking account for the llc do I fund that to the lvt? Also, i thought i read some where that your only allowed a certain $ amount to fund your lrt before you would run into a tax problem?
thank you very much for your incite
Hi and welcome. You have been given advice by the best CPA on this forum. I recommend him highly. As to the trust/llc situation, mc is referring to a land trust (a specific type of trust that is a revocable, inter-vivos living trust that only holds real estate). The LLC protects your personal assets but leaves the real property partitionable and subject to liens and encumbrances. The land trust shields the property itself and provides privacy and asset protection.
Good luck to you.
it’s not your job to make your accountant’s life easier. It’s his job to take care of YOUR needs.
deed the property to the trust, make the beneficiary the LLC. Then the LLC takes “beneficial” ownership of the property and can pay the mortgage, take the deductions, etc.
For estate planning, the easiest method is to gift partial interests in the LLC. Unless you want to actually assign properties to certain heirs. For that you should consult an atty.
how would i go about getting a land trust in PA? Is it somthing i can do myself online or do I need to get a lawyer?
Do i have to have my name on the deed along with the trust or can the trust be the only name on it?
when i deed the house over to the trust and make the llc the beneficial owner do i need to indicate this in the llc?
well, yes. the llc will ideally have books and records and the asset, liability assumed, and other expenses will be recorded appropriately.
You don’t deed the house to the Trust, you deed it to your Trustee. The only name on the deed is the Trustee. He owns the real property. You own the trust which manages the property. You don’t need a lawyer and yes you can do it yourself online.