Cash Purchased Flip, Transferring Title to LLC

[Rob Strickland]

I purchased a property back in early 2015 for 35k without financing. Since then I've spent roughly another 10k to perform the demo, put together drawings and for permitting. The property is currently in my name, but I want to partner up with a family member who has the funds to finance the rehab. My initial thought was to transfer the property into an LLC which would include myself and my family member and would establish the share of the profits in the operating agreement. The second thought was it would also provide a layer of protection for me during the rehab construction. However, I don't know what sort of tax repercussions this my have on me since I originally purchased the property in my own name and spent some of my own money on the property this past year. I don't intend to move any funds when transferring the title into the LLC since there wouldn't be any available until the property is actually sold. Any tax related input on this scenario would be greatly appreciated.