Quit Claim Deed Taxes

[Victoria Rossi]

I need to transfer a property from my sister to my LLC. However, I am concerned about the tax implications. We were thinking of doing a quit claim deed for $100. Any insight into the tax consequences of this transfer?

[Nathaniel Quesenberry]

Hey Victoria,

So there wouldn't be any sort of income taxes related to this transfer of property as it is not considered a sale or exchange. 

With that said, I don't think that there is enough information here for us to give you a clear answer. If the LLC is solely owned by you, then this may be considered a gift from your sister to you which could be reportable by her, if your sister is a part of the LLC, then this is probably just a property contribution to a partnership owned by you, her and any other members involved in the LLC.