Refinance Investment Property and LLC

[Michael McClain]

Hello, I am in the process of doing my first refinance of an investment property(4-plex) and have a question regarding my LLC. I purchased the property in my name and then moved it into an LLC with a quit claim deed. The bank is saying because of Fanny Mae, Freddy Mac policy, that I need to move the property out of the LLC for the closing and then I can move it right back in after closing.

I don't have a problem with that, but my accountant is saying that the IRS looks at that as a sale and it would be a taxable event on the amount that the property has gained in value (approximately 100K). Another accountant said that is not the case and there is no implications with moving the property in and out of the LLC.

Does anyone have experience with this and can give me some guidance?  Thanks so much!