How do I put my investment properties in a business name?

[Becky Farnsworth]

Hi everyone!  I am new to the group and look forward to your advice! My husband and I have 2 rental properties in our name.  The first one used to be our primary home so we left it in our name because we didn't know how to change it.  Then we bought another property about a year ago and our loan officer said she couldn't do a loan for us in a business name.  It was easy enough to finance it with our credit, so we went that route and now have 2 investment properties in our name.  We would like to separate our liability and put them in a business name.  What is the best way to do that?  Will there be any tax consequences when we sell either home?  

[Josh Caldwell]

Becky

your question is state specific, the rules are differant in each state.  You will want to talk to a real estate attorney to get the right answer for Idaho.

Now with that being said, there are several mechanisms that you could use,   In most states you can either quit claim a property to another entity without a problem.  You can also transfer a property into trust for estate planning purposes and asset protection.  In my state of PA there are additional rules you need to deal with, but I dont want to go too far down that path. 

The big hurdle you need to look out for is transfer tax, and how and when it is triggered in your state.  That is where you need to understand the law of your state.

I hope some part of that helps

Josh