Transferring a Property From One Entity to Another

[Wendy Vaidic]

Hello!

Due to a time crunch, I purchased a long-term hold property under my flip LLC, which is taxed as an S-Corp (I know it was a bad move, but it was the only one I had)

We have renovated the property and are getting ready to rent it out.

I would like to transfer the property from the flipping S-Corp to a long-term hold LLC but have a few questions:

1. Can I sell the property to the LLC at cost or does it have to be fair market value?

2. Can I quit claim it to the long-term LLC?

3. Any other ideas that would keep expenses down while moving the property from one business to the other?

Thanks in Advance!

[Mitchell Zoll]

Talk to your CPA before making a move so the documents are all in order. There may be ways to document the transaction to take advantage of the costs you incurred to renovate the property.  But don't do a quit claim. A quit claim is a deed that says "I might not have any interest in this property, but if I do, you can have that interest". Title companies could cause headaches because of it in future deals. Just do a proper deed transfer.