Buying our flip and taxes

[Joe Stubbe]

We have a flip that we completed and like so much that we are considering moving into it for a personal residence and refinancing it to a primary. Are there any tax implications since it's currently in an LLC and will be transferred to our personal name at close? I realize this may require a tax pro but wanted to get an initial pulse from this community first. Thank you!

[Joshua Thompson]

There can be a tax implication in one form or another. If your property is in an S Corporation the "distribute" or "sell" or "fixing cost" of the property might impact your tax situation. This all comes down to how you're structured, how the flip cost were accounted for, if there is a partner (you mentioned "we").

If it is an S Corporation and you "distribute" or "sell" the property to yourself, if there is any loss on value, which probably there isn't, know it most likely won't be deductible if it's a related party transaction.