Selling property by using a LLC

[Charles Wilson]

I remember reading somewhere about purchasing a property Quit Claim Deed it to a LLC. Then selling the LLC instead of the property. You would be selling the Company with the property as it's asset. Has anyone heard of this or done it before?

[Tom Gimer]

Most people do this to save on transfer taxes. There is no deed recorded so no tax... or so you would think. To address this many states pass laws concerning the sale of a controlling interest in an entity... so while you may think you've avoided paying transfer taxes that is not always true.

People also do this to prevent a property from being re-assessed in jurisdictions where a sale would typically trigger that. No transfer on the books would mean there is no new value for the taxing authority to take into consideration.