Transfer tax question in Philadelphia

[Alyn Shek]

Hi BP, it's been a while since I've last posted but that doesn't mean I haven't been following the interesting posts on the BP forum.  I've tried searching for answers to my questions on the forum with no luck, so here I am typing away trying to get some advice from the experienced folks.  

I owned free and clear properties under my personal name and I'm looking to quit claim or sell to my LLC.

I'm getting mixed opinions from Title companies that I had past business relationships with so I'm looking to see what is the best course of action for my situation. The biggest hurdle is obviously the transfer tax that I will have to pay based on the assessed value. A title company suggested selling the properties to my LLC for a nominal amount to reduced the tax consequences. So the question is do I sell it to my LLC for $1 or QC to my LLC and pay the transfer tax (again!)? and WHY?

Does anyone have any similar experiences? 

Cheers,

Alyn

[Yuriy Skripnichenko]

@Alyn Shek

You can sell/transfer the deed into your LLC and record it as $1 with no problem. However, you will still have to pay transfer tax from the market value.

You will have to use REV-183 form and pay the tax of the amount stated in the form.  I went through it a few times and it hurts. But from what I know there is no other way around it. 

From PD Department of Revenue website:

"Some real estate transfers are exempt from realty transfer tax, including certain transfers among family members, to governmental units, between religious organizations, to shareholders or partners and to or from nonprofit industrial development agencies. Deeds to burial sites, certain transfers of ownership in real estate companies and farms and property passed by testate or intestate succession are also exempt from the tax."

Hope this helps