All Forum Posts by: Sofia Kolesnikova

Thank you Stephan for this advise. This is in fact why we opened up an LLC and now what to move the property on it to avoid any future liabilities.

Hello Guys,

I had a question concerning a current lease in place with a tenant I have residing in a townhouse I am renting out in Tampa, FL. The lease was written under my name and my boyfriend's name as the title of the property is under our names (as is HOI). However, we are in the process of transferring the title on to an LLC we established. The current lease with the tenant is 3 months and then monthly afterwards. My question is if the lease now needs to be updated or changed once the property title is legally transferred off our names to the LLC? From listening to some blogs, it does not appear as if we need to formulate a new or update the current lease. And they advise the tenant to just make the rent payments to the LLC name instead of our names. I just wanted to clarify if this is in fact true to unforeseen liability issues if this is not done correctly. Thank you.

Michael,

Thank you for your input. I will reach out to Chris this Monday for his input. Michael, I have a property with my fiance (separate one then in the previous discussions) now in Tampa and a tenant living in the property. The lease is under my and my fiance's name. However, we are transferring the property to the LLC. My question is does do we have to amend the lease from our names to the LLC. As I have researched, it appears that this is not needed. The information I received is that the tenant must just send rent for make checks out to now the LLC ones the transfer occurs and not to us personally. Is this correct? He currently has a month to month contract. Thanks.

Michael,

Thank you for this reply and information in who to contact. I will definitely reach out to Chris. Michael, I had another question for you that I was hoping you would be able to answer. If as stated above my fiance and I pay off the mortgage and my brother, is it possible then to have my brother quick claim deed to our established LLC without suffering any unforeseeable tax implications if we do it this way? Thank you.

Lynnette,

Thank you for your input. However, as I understand if we do this as a "purchase" there will be tax implications which we want to avoid. Thereby, paying off my brother and mortgage and then having my brother do the quick claim deed to transfer title to my fiance and I, is what we are thinking would be the best way to go about this without incurring any other fees/penalties. However, since I am not married, I am concerned for the possible hidden fees that my fiance will have to pay if we do it this way. As I do not know in depth the what the IRS laws are. Believe me I consulted a real-estate attorney who couldn't give me an answer, then tax attorney who also could not tell me a clear answer and stated that maybe a CPA can answer this question. 

Hey Guys,

I had a question that I was hoping that someone can answer. My brother and I have a townhome together as an investment property (in Tampa, FL). My brother wants out of the property. I do not want to sell. My fiance agreed to take his half of the ownership of the property. So as it stands now, my brother and I are 50%/50% owners and mortgage holders on the property. We want it switched to where I retain 50% and my fiance will flip with my brother and retain the other 50% ownership of the property, releasing my brother from the title/ownership and mortgage. However, after talking to the bank, the only way this could occur is through refinancing with closing costs ranging from $4500-$7000. Which would not be profitable in investment terms. So we reached a compromise, where my brother wants the initial $18,000 he invested in the property and my fiance and I will pay that to him and pay off the current 100K in mortgage and then he will do a quit claim deed to transfer the title over to me and my fiance.
   My question is as follows, will there be any tax hits with this type of transaction? As it is not technically a " sale of a property" (or is this still considered a sale?) will my fiance or myself get hit with any unforeseen taxes, fees or penalties if we do it this way? I don't know if this would be considered a "gift". As I am already 50% owner, I do not believe it will affect me (correct me if I am wrong) but what about my fiance who will essentially gain a property in this way. The lifetime gift tax exemption is $11.58 million, as I understand. The annual gift tax exclusion is $15,000. 

Thanks!