Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

Account Closed
5
Votes |
18
Posts

Leasing rental prior to forming a legal entity

Account Closed
Posted

I have two questions about leasing a SFH that I hold in my personal name (because I recently purchased it as a replacement property for a 1031 exchange in which the relinquished property - a vacant lot - was held in my name) but will soon be transferring into an LLC.

I was told by my closing attorney that I should wait "a couple of months," at least until after the new year, to transfer the title into the LLC in order to avoid any tax implications. I don't know if this is actually necessary.


My first question: Is there a certain length of time I need to keep the property in my name for the 1031 to remain valid?


I have a tenant moving in 1-4-20. If I lease the property in my name I would likely have to get a new lease agreement signed when the title is transferred to the LLC.


My second question: Is there some clause I can put in the lease, such as "and or assigns," that would allow me to assign the contract to the LLC at a later date, without having to get a new lease signed after the title is transferred?


If anybody has any experience with a similar situation or advice on how best to handle this I would greatly appreciate it. 

Thanks in advance and happy holidays.

Seleem

Loading replies...