Living Trust & LLC
Can you use a living trust and LLC together to provide asset protection? My lender will only allow me to transfer title of the property to a living trust and not an LLC.
Can you use a living trust and LLC together to provide asset protection? My lender will only allow me to transfer title of the property to a living trust and not an LLC.
Put the property in a trust. When you set up a trust, you need to name the beneficiary. The named beneficiary should me your legal LLC name.
Good Luck!
[addsig]
P.S. - This way your bank will allow the property to be put in trust, but you will also have the protection of your LLC!
[addsig]
The capital gains does not depend on the encumbrances. The gain realized is the difference in the net sales price and the basis of the property. Here is an example:
If you purchased a property some years ago for $85K then put $15K (capital improvement) into the property and depreciated it $10K, then the basis is $90K. Now you sell the property for $120K with $3K cost to sell. Your gain is $120K - $3K -$90K = $27K. The gain component that is depreciation ($10K) under current law is taxed (Federal) at 25%. The remaining component ($17K) is taxed (Federal) depending on you marginal bracket. For many this is 15%.
I hope this helps to clarify.
Yuck! Does anyone have any thoughts (besides a 1031) on how to mininmize the capital gains taxes?
What does the inspection contingency say about options--seller (you) agreeing or not agreeing to make requested repairs or crediting towards purchase price? Under the inspection contingency, does the buyer have a right to terminate the contract in his discretion?
Has the estate been probated? In FL, even if you are in the will, the estate must be probated if the property is not held in a trust.
Brenda