Rentals, Relocation, and Taxes, oh my

3 Replies

Hey BP,

I have another newbie question. I own two, newer rental properties in WV. I will be relocating to Charlotte, NC by the end of 2014. I would lose money if I sold the properties and neither of them are in any business entity.

Can I wrap those two properties into an LLC formed in NC once I acquire a few rentals in NC? If not, which would be better

1. Keep WV rentals in my name and treat as personal property

2. Form LLC in WV to hold the properties as business assets

Thanks in advance for the advice!

What's your goal? Are you wanting to sell them and take a loss to offset other income? The property taxes won't change regardless so it won't help that. Need more info. I'm not an accountant, but a personal loss or LLC loss should be treated the same.

I'm going to keep the rentals. I just purchased them this year and if I try to sell them, all the transactional costs would put me at a loss.

I'm just trying to figure out if I can put them in an LLC formed in NC

If not, should i put them in an LLC formed in WV, or keep them personally

Thanks!

I personally do not think it matters. And of course I am a not a cpa or Attorney. Now I will assume that their is not a bank loan on these because if is. Becareful with switching to a LLC a land trust could be more beneficial to avoid the due on sale clause. Also I was advised if it has a bank loan you must alert insurance that title is changing to make sure that is ok with them. Because if not they could use that to deny claim. hope that helps

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