I have a property in Cleveland that I bought with the intention of rehabbing and flipping. I set up and LLC and bought property outright. Things have changed and the rehab is not selling. Therefore I will keep as a long term hold. I would like to move the title into my name personally. This is in part because I will likely do a cash-out refi at some point and also because I don’t want to deal with hassle of seperate taxes, etc. for the LLC. (I won’t need to use the LLC again as I’m not planning any more flips).
Oh other issue here is what the tax classification of the LLC is… E.g., if the LLC is taxed according to one of the default classifications, there shouldn’t be any tax hit associated with the distribution.
However, if the LLC made an election to be treated as a C corp or as an S corp, you will create an exchange by distributing the property to the LLC member… and that’ll have tax consequences. (If this sounds like what you did, you want to confer with a knowledgable local tax practitioner.)
By transferring the property via a Quit Claim deed you also quit the related Title Insurance that was purchased when you bought the property. You should weigh the benefits of retaining the Title Insurance to your situation. I know that Quit Claim deed transfers are a lot cheaper.
You may wish to use a Grant Deed, Warranty Deed or Special Warranty Deed to continue the Title Insurance. Each state uses different terms to accomplish the same thing. Something else to chew on.