Quit-claiming from LLC to Personal - What Taxes Should I Expect?

[Sean Williams]

Greetings BPers,

This is a question directed more towards the accountant gurus of the crowd, or those with experience in this type of specific transaction...

I have a situation where I'll be acquiring a property via a quit-claim deed from an LLC (family member) into my personal name. The property is owned free/clear by the LLC and I will not be getting a mortgage on the property. Also, the property was bought in the LLC over 12 months ago for $95k and is now worth about $150k (fair market value).

What can I expect Uncle Sam to come knocking for....Should I expect a gift tax on my end? AND will my family member be subject to a capital gains tax since it's being sold from an LLC?

Any other surprises I may expect? Thanks!!

[Steven Hamilton II]

If they are just gifting it to you then the family member giving it to you should be filing a gift tax return based upon the 150k market value; however, YOUR BASIS will be what they have invested into it.  So make sure you get that information.  They are giving it to you, that is not a sale.