Pros/Cons of deeding a property to an LLC

[Sib Bahjat]

I purchased a SFR property years ago and I financed it under my personal name. I then transferred the deed to my LLC. My CPA advised me to transfer it back to my name and not leave it in the LLC. His reason was that I would be better off from a tax standpoint, I am not 100% certain I agree with him. Any shared experience in this space is appreciated.

[Joe Splitrock]

Originally posted by @Sib Bahjat:

I purchased a SFR property years ago and I financed it under my personal name. I then transferred the deed to my LLC. My CPA advised me to transfer it back to my name and not leave it in the LLC. His reason was that I would be better off from a tax standpoint, I am not 100% certain I agree with him. Any shared experience in this space is appreciated.

I had similar discussion with my CPA and he advised me there is no tax advantage to having my property in an LLC, since I am the sole owner. The only tax advantage I could imagine to keeping it personal is less paperwork. I would be interested to hear why he feels you are better from a tax standpoint? I am not sure I agree with another post that you should fire your accountant, but asking for an explanation is a good idea.

Most people push into LLC due to either partnerships or for liability protection. I have heard that an LLC provides only a thin layer of protection from liability. I was advised to just spend money on a good liability umbrella policy. For a small operator, the LLC requirements definitely take extra time/money and I see myself getting little benefit.