I had a couple of questions about Quit Claim Deeds, I’m sure there are some experts out there.
If I own a property in my name, can I Quit Claim Deed the property to my LLC and now have the property in the name of my business? By doing this, when I sell the property would that show as income for the business rather than personal income?
Thanks for the help
Yes you can quit claim your property into a business name and yes that would make it Income when you sell and yes as a Business owner you get great tax benifits. And it makes sense if you are not going to hold the property long.
If you are holding for longer then six months.
Look into a Trust and quit claim into the trust there are much better tax advantages in trusts then there are in Business. The other main advantage is simply the fact that if someone slips and falls and sues you they can only go after the trust and not you’re Business and or you personally Trusts are hands down the way to go. Another advantage is let’s say you are married and kids. Now if they as well are beneficiaries to the trust and something happens to you personally. That property no longer goes thru probate it automatically goes to the beneficiaries of the trust.
I was told by a wise man onetime “Never put your trust in money, Put your money in a Trust”
hope this helps.
Robb
Thanks Robb that helps a lot. If I’m holding for longer than 6 months than why would suggest a trust? I agree with using a trust as well, but I didn’t know if there was a timeline as to when you should place a home in a trust. Also, do I need to contact my lender first so I don’t get hit with a due on sale clause or does this not apply?
Thanks for the help.
Does not apply you still can keep the loan in place… People put there property in a trust everyday of the year it is the number one way to cover your A$$et! In more ways then one, Even my personal home is owned by a Trust.
robb
can You put investment properties in trust, i.e., duplexesor triplexes? thanks
Sure can! You can put anything of value into a trust.