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Tax On Sale Of An Llc Rental Property, How To Account For, And Do I Need To Quit Claim It Back Under My Name?

Having a dispute with a tenant or landlord? Rental Law discussion

Tax On Sale Of An Llc Rental Property, How To Account For, And Do I Need To Quit Claim It Back Under My Name?

Postby Tayte » Thu Dec 08, 2016 7:39 am

s About Taxes)/Tax on sale of an LLC rental property, how to account for, and do I need to quit claim it back under my name? Advertisement Expert: Bruce W. Tyler, EA - 8/1/2009 I bought a property, had the title under my name, then a few days later quit claimed the title to my LLC. 1. For my 2009 tax, do I list the purchase under the LLC tax return or on my own tax return? I remember there is a question that asked"Did you purchase a property this year". If I said yes, then the cost basis will be on my tax return. If I say no and put it on the LlC books, then the cost basis is on LLC.

2. When I decide to sell the property a few years down the road, do I have to quit claim the title back to under my name? or can I sell it under the name of the LLC. I guess this may be related to, who owns the cost basis under question #1.
Tayte
 
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Joined: Mon Jan 20, 2014 4:29 pm

Tax On Sale Of An Llc Rental Property, How To Account For, And Do I Need To Quit Claim It Back Under My Name?

Postby Denley » Thu Dec 08, 2016 12:25 pm

s About Taxes)/Tax on sale of an LLC rental property, how to account for, and do I need to quit claim it back under my name? Advertisement Expert: Bruce W. Tyler, EA - 8/1/2009 I bought a property, had the title under my name, then a few days later quit claimed the title to my LLC. 1. For my 2009 tax, do I list the purchase under the LLC tax return or on my own tax return? I remember there is a question that asked"Did you purchase a property this year". If I said yes, then the cost basis will be on my tax return. If I say no and put it on the LlC books, then the cost basis is on LLC.

2. When I decide to sell the property a few years down the road, do I have to quit claim the title back to under my name? or can I sell it under the name of the LLC. I guess this may be related to, who owns the cost basis under question #1.
Denley
 
Posts: 52
Joined: Fri Jan 31, 2014 10:41 pm

Tax On Sale Of An Llc Rental Property, How To Account For, And Do I Need To Quit Claim It Back Under My Name?

Postby Larz » Thu Dec 15, 2016 11:30 am

Is the LLC a single person LLC or a multi-member LLC?

Is this rental or investment property? Let's assume rental.

1. If the LLC is a single member LLC and you have *not* elected to be taxed as a corporation, nothing changes for Federal purposes since the Feds do not recognize a single member LLC. It's called a "disregarded entity". Keep depreciating and reporting on Schedule E. For your state LLC return, list the property on the LLC return. Use the original cost basis and date of purchase. Remember to enter any accumulated depreciation on the building and improvements.

If you have elected to have your LLC taxes as a corporation, it gets more complicated.  

2. If a single member LLC, you do not have to quit claim it back. Again for Federal tax purposes, an LLC is a "disregarded entity". The sale would be reported on your 1040, Form 4797. For state purposes, report the sale on your LLC return. The sale information will flow through to your personal via the K-1.

Bruce W. Tyler, EA

Lancaster, CA. 661-724-1041  
Larz
 
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Joined: Sat Feb 22, 2014 2:10 am


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