Tax implication of transfer of a deed from a person to a LLC

[Robert Koulefianou]

Hi Members from BiggerPockets

I have an investment property in Maryland and I'm planning to transfer the deed to a LLC I own. I need to know if I will pay any tax by doing so. Please let me know.

Thanks

[Bob Norton]

@Robert Koulefianou @Corey Stubbs You will not owe any income taxes for transferring a property that you own to your LLC. It is considered a contribution of capital under the tax law. You can accomplish it in most areas of the country using a quit claim deed rather than a donation. You may have to pay local transfer taxes depending upon your county, so you should check into that.