Title Transfer Info!
Hi, Have a question for an experienced investor.. My partner and I have a newly formed LLC and recently came across a nice duplex which he financed in his name because I was in the middle of a refi on my personel property , and could not participate. We want to transfer that property to the LLC but have been told there is an excise tax that must be paid if we do this, before the transfer will be recorded. We want this in both of our name now to protect our equal interests. Any ideas on how we can split this now to show equal ownership? Our goal is to fully transfer this into the LLC.
Thank You
As you can see, the answer is different from state to state. The best solution is to talk to a good real estate attorney--even better, an attorney at your title company--who should know the exceptions to the excise tax.
Some jurisdictions allow an owner to transfer the property to (for example) an LLC wholly owned by the owner without tax, on the reasoning that this is essentially just changing the name on the deed and not really changing who the owner is. If that is the case in your state, your friend could transfer the property to the LLC then sell you a 50% interest in the LLC.