can i sell to my LLC (philadelphia area investor)
i am renting 3 properties. when i bought my first rental (rental 1) in 2013, i was a noob. i didnt read much on this forum but i knew the property was a good deal. the home is in my name and only my name.
in april of 2015 i bought a forclosure (rental 2) for 6k with credit card and had it rented after 3k in repairs and renovations. the home was bought in my name and only my name.
i spent more time reading and purchased an insurance for the properties. general landlord policy to cover the home and damages and fire etc. i also purchased a general commercial liability umbrella for myself of 1mil. i also formed an LLC.
in november of 2015 i was on craigslist and saw a place around the corner from my work up for sale. i offered 40% less then asking price, arguing the comps and condition bla bla. the seller wanted our and he sold to me (rental 3). this home was purchased in the name of my LLC.
Rental 3 is the only rental in the name of my LLC. even though i have insurance covering all three properties and general commercial liability for 1 mil in the event i am personally responsibly, i still have a voice in the back of my mind that would like to have the other 2 rentals in the name of my LLC and not me personally. i feel comfortable with the separation. these homes are in the low income sub 30k market. if you are reading...here is the catch...
in Philadelphia, in order for my to transfer a deed, i will pay 4% tax on the assessed value. the home bought for 6k is assessed at 45k. the home i bought on craigslist is assessed at 52k but i bought it for 17k. if i want to transfer both properties, i would be paying thousands of dollars just to have the homes in the name of my LLC because the city would go off the assessed value. Can i sell the homes instead? i, personally, am the seller and my LLC is the buyer? im not talking about doing a dollar transfer (i know that looks shady) but i would actually sell to myself for something close to what i paid at the time i bought them. is this a question for a title company or my CPA?
what would YOU do?