Should I transfer a property I intend to sell soon to LLC
I am planning on selling a large farm to the occupying tenant. He is trying to obtain financing, however, he poses a huge liability risk for me. I have no idea how long or if he will be able to obtain financing and I am contemplating transferring property to an LLC just incase. My main concern is that I will be making about $350,000 profit on sale and not sure how the transferring to an LLC will affect me tax wise. All the rehab expenses etc were made under my name personally over 8 years ago when I first bought it. Also, I would shut down LLC after sale. How would I distribute profits or will it be considered pass through income at new lower rate? I hate to go through all this effort but this tenant keeps me up at night.