Transfer property title from LLC to personal name, Taxes?

2 Replies

Hi, I opened an LLC and bought 1 house under its name 3 years ago, the house came with the tenant included. I don't need the LLC any more and would like to close it and transfer the house title to my personal name (the tenant will continue renting the house). Does anyone know what steps should I follow? Are there any kind of taxes I would have to pay to make the title transfer? I'm not a US citizen I live in Mexico. Can someone kindly advise with this? I've been asking to my CPA but he doesn't have a clue or maybe not convenient for him since I wont be needing him anymore. The house and business are located in Miami Dade, Florida. Thanks in advance!

When talking about taxes, there are two categories to consider--federal taxes and state taxes. Just based on the bare facts, and assuming there are no other partners or other property being distributed, you shouldn't have any federal tax consequences. An LLC with only one member (you) is disregarded for federal tax purposes. That means that when you distribute the property back to yourself, in the IRS's view, no transfer really occurred. While I can't speak to FL taxes on real property transfers, I'm willing to guess that it's unlikely to create a taxable event at the state level.

I'd recommend finding an attorney to file the FL state forms ending your LLC and ask him if there are any other issues to be aware of.

In Florida if you have a loan on the property you will have to pay doc stamps on the transfer. It's not hurting any thing to leave it in LLC. IRS allows you to treat LLCs as disregarded entities which means you can treat as if it were in your personal name. If I were you I would just leave in LLC name, even if you stop paying the annual fee for LLC you can still sell the property later any time in future. You just have to sign an affidavit stating your still authorized to sign for the dissolved LLC. Good luck

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