3 Family Home with 6 owners: Tax consequences for LLC transfer

[Denny Wu]

My parents own their primary with my two uncles and they each occupy a floor. They're starting to think more about transferring the home into an LLC with 6 members (husband and wife x 3). What is the best way to accomplish this? I fear the tax consequences..

[Brian Bradley]

Have them all get on the phone with a CPA and Attorney and create a Asset Protection plan and structure. They can put the property into a Asset Holding Company (LLC and Trust). The trust is the key necessity that allows the legal transfer. Just like any estate plan where you transfer title into the trust.

[Lance Lvovsky]

@Denny Wu They need to speak to a CPA and Attorney. Transferring real estate to an LLC can be done without tax consequences, but you need to speak to a professional. If the LLC will also have members that do not currently own the property, then there may also be gift tax implications.