Transfer property to LLC

[Carly M.]

What are the pros and cons of putting a home i ent And I own under my name into an LLC? I know liability is the biggest reason. Also what are the legal and tax implications and procedures? Thanks!

[Tony Castronovo]

I'm not an expert on this, but my understanding is that you can transfer the deed through a relatively simple transaction that your title company or lawyer can assist with. Biggest advantage of putting in your LLC is liability protection as you pointed out. If you have a loan on the property, technically the bank can exercise their due on sale clause. But I have heard that rarely happens as long as you have a good payment history.

From a tax perspective (again, not the expert here and could be wrong)....I believe that you will need to file a separate return for your LLC, even if you are a single-member LLC. You should still be able to claim all the deductions, etc. but you will likely be paying another tax prep fee. Please check with your CPA on this.