Transferring a property from LLC to LLC

[Edward Park]

Hi everyone,

Good morning!

We are transferring a rental unit from one LLC to another LLC. Both LLCs are s corporations and incorporated in maryland and are owned by the same members (entity).

Questions:

When we transfer can we arbitrarily decide on the value of the property?  do we pay a transfer tax?  are we subjected to any other fees?

How does the transfer affect the stock/debt basis?  does it reduce it by the amount the property is transferred at?

How do you reflect the transfer of the property on the stock/debt basis worksheet?  which line number on part I will this transfer be reflected?  I assume it is line 13.  If not, where do you place it?

Thank you again for your insight.

Much appreciated

- Edward