How do I get rid of worthless real estate?
A few years ago I purchased a vacant residential lot in my personal name. I won’t post too many details, because I don’t want to obscure the true issue at hand. All I’ll say is that the property is worthless. Completely worthless. A potentially large liability, even.
I was thinking I’d just stop paying the taxes on the property and let it go to tax sale, but I want to be smart about it and make sure it’s as beneficial to me as possible — legally, as well as financially.
I was thinking I'd Quit Claim it to an LLC that I would create for this sole purpose and then stop paying the taxes. I figure this would keep the tax sale foreclosure and any liens out of my name and off of my credit reports. My only hesitation is that I'm afraid it may be considered a fraudulent conveyance. I'm also unsure whether or not I'd be able to write it off as a capital loss.
Would this be my best bet, or is there another option I’m missing?