Quit Claim Deeds and Business Tax

[Mischael Metelus]

Hi, I'm hoping someone could help fill in some knowledge gaps for me. I recently acquired a property through a tax lien and it has now appreciated in value. I've started my own LLC in South Bend Indiana and I'm planning on moving the property to my LLC as an asset so that I can leverage it for my real estate business.

I'm very excited for this opportunity, but I want to make sure I understand the potential downstream effects of the quit claim deed. While filling out the form i noticed that it asked for the valuable consideration amount of the property, my questions are as follows:

1. What happens if I put the valuable consideration at $1? 

2. Would I pay additional tax upon transferring to my company based on the amount I sold?

3. Would this be recorded on the properties sales records and affect future leveraging?

Any help would be appreciated.

Kind regards,

M. Metelus