Transfer deed from personal to LLC correctly?
Hello Biggerpocket community, I'm an investor from Charleston, SC.
What is the "right way" to transfer the deed of an investment property acquired in your personal name into your LLC's in SC?
Is it as simple as a quitclaim deed or should it be a grant/warranty deed? Also, what are the tax implications, especially regarding depreciation if the deed is in one's LLC's name? My CPA suggested I need to make sure the transfer price is the same as the cost of my original purchased. How do I properly document that with the title transfer?
I'm currently reading Sutton's book "Loopholes of Real Estate" (pages 184-187) and he suggests transferring using a grant/warranty deed instead of a quitclaim deed. His rationale, if I follow him correctly, seems to be that it produces a cleaner chain of title but also it doesn't void the title insurance policy on the original warranty deed in my name.
I had originally contacted a couple of well known real estate attorneys in my area about transferring the title into my LLC's name and both suggested a simple QCD. None of them even mentioned a warranty deed or brought up anything like that to my attention.