Deed in individual's name for financing but owned by LLC

[Sam Rogers]

My business partner and I purchased a property almost a year ago with cash under the name of our LLC. We recently did a cash-out refi using a conventional mortgage. This required us to quit claim it into one of our own personal names. Income and expenses associated with the property still flow through our LLC account and we consider the property to be jointly owned. As far as we're both concerned, it remains part of the LLC.

What will be the implications when we go to file our tax returns? Would it be kosher to pass everything through the LLC even though it is not technically owned by the LLC? I like to think that the IRS only really cares about your "honest to god" intentions in something like this (and that should be evident here). But maybe I'm being naive.

[Natalie Kolodij]

I wouldn't report an asset under a partnership that legally has no ownersip of it.