Transferring Philadelphia Property into LLC

[Adam Varone]

I am a Philadelphia investor. I purchased my first property a year ago and am currently house hacking it. I am in the process of purchasing another and doing the same. When I move into the second property I plan on turning my first property into a rental. I spoke to my CPA, and he mentioned it may not be worth it to transfer the first into an LLC because of the Philadelphia transfer tax. Is the protection of the LLC worth the ~18k in transfer tax I will be paying to put it into the LLC?

[Kevin M.]

Not worth it. Just get $2M in GL if your insurance offers it. And a large umbrella policy. Philly is doing everything in their power to erode LLC protection anyway. Just my opinion as someone who has been in the same boat with Philly's abnormally large xfer tax.