Taxes on Investment property: LLC to Personal name switch

[Daniel Jenkins]

Hi All, 

Just looking for some advice and recommendations for an excellent CPA. 

I purchased my first fix & flip in March this year in Charlotte, NC. Purchased all cash from a wholesaler. After reading various sources I went the route of forming an LLC and purchasing through that. It hasn't turned out to be a great deal as the rehab was far more than expected but fortunately, market appreciation might end up saving my bacon. The might be very small profit or a slight loss after all sales fees etc.

My question is related to taxes. I'm married and file jointly. The rehab should be done in the next couple of weeks at which point I will list it for sale. My concern is that it won't sell for a price that I will recoup the investment. If that's the case I'll need to rent it out for a while and loan products seem to be much much better for a personal loan vs. LLC.

I can deed title of the property from my LLC to myself now (a simple process) but:

- Will this incur taxes at the time of transfer?

- Does there need to be a financial consideration for this to 'pay back' my LLC which made the initial investment?

- Is it better to just sell the property from the LLC so that the buy, the rehab and the sell are all contained within that entity?

Any thoughts and advice on this would be very much appreciated. 

Thanks very much. 

Dan