Transfer condo from LLC to owners

[Michael Miles]

We are considering dissolving our 2 person LLC and transferring our condo in South Carolina to ourselves as co-owners. There is no mortgage on the property. Should we transfer the property, then dissolve or do it all at once. We will not be selling the condo after dissolving the LLC. Are there any tax implications as far as income or capital gains? Thanks, Mike

[KC Ushijima]

You will want to review the potential transfer with a local CPA.

The tax election of your LLC that owns the condo can play a factor.

If the LLC is has an S-Corp or C-Corp tax election, the transfer to members could be treated as a taxable distribution.