Will transferring primary residence to LLC affect taxes??
I'm new to real estate investing and new to the United States and how taxes are filed here.
My dad, a US citizen who lived all his life abroad, sent some cash from my home country to be invested in the US. Spouse and I bought a property in April. We used the cash dad sent and some credit cards with 0% APR promotional period to buy and fix the property. This property is our primary residence, the title is currently in my name and we are house hacking to bring in some income to help pay those credit cards.
My goal is to ensure that dad, spouse and I are all listed as shared home owners on the property according to our respective shares (dad should own the majority share). I set up an LLC and I want to set the share distribution in the article of organization. But I also want to make sure that my dad wouldn't be taxed for any income we are getting from our current roommates, since spouse and I have been using this income to pay off the credit cards we used for the purchase.
My question is, will transferring the property to the LLC affect the taxes we will be paying on it? Is there a title transfer tax? Will it affect taxes for my dad? Do I need to file taxes for my dad at all or will filing LLC taxes be sufficient? My dad never filed taxes here because he never really lived here beyond being a 3 months old baby. We got his SSN last year.
Sorry, if my post seems to be all over the place. I just want to make sure that I'm not missing something I should be doing. We bought the property in Riverdale, GA if it helps. Clayton County.
Thank you so much in advance for your help 🙏