I am making a capital contribution (of a RE Property) into my LLC. I am transferring the deed (General Warranty) from my name into the the LLC.
Is there any other paperwork needed?
Is it advisable to execute a Closing/Settlement Statement when transfering a RE property into an LLC? How do I figure out how much capital gains tax I will pay when I sell the property in the future?
Let’s say the property’s fail market value today is: $100K
And Let’s say that I today (just before the transfer) have 20% equity in the property, and 80% outstanding loan.
Let’s also say that I’ve taken $10k in depreciations so far.
I want to transfer this property in the LLC.
How should I structure/record this transfer? And do I need a settlement statement for this?
Let’s assume some time in the future I sell the property (owned by the LLC) for $200K, and that $50k is still outstanding in the mortage.
Do I need to pay capital gains tax (on any profit) or just income tax? How much?
Any help is greatly appreciated. I know that I should not take as professional advice, but should also consult a CPA.