Is a Settlement Statement Needed/Advised for transfering of RE property into LLC

General Real Estate Investing
1

Hi,

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.

2

Did I post my question correctly? I see an “open” folder icon in front of the post, while others’s are closed.

3

Your post is fine…there is a key for the meaning of the icons at the bottom of the page for each Discussion area…an open folder icon means that YOU have posted in that thread,

Keith
Moderator