What happens to capital gains when you transfer property to LLC?

[Bin Chen]

Hi all,

So the situation is as follows:

My father bought a house 15 years ago for around 300k, it can now be sold for about 700k so if I were to sell the property There would be a 400k capital gain. Last year my father and I created an LLC and transferred the house to the LLC for for a 34% stake in the property. Since there was no money exchanged in the transaction we didn't pay any taxes. Now if I sell the property, who would pay for the change in value? does the property still qualify for 1031? and is this question more suitable for a lawyer or an accountant?

Thank you.