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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Customer Question

I have to two properties in our (my wife & I) LLC. I would like transfer one of the property to another LLC owned by us ( my wife and I). We live in Maryland and properties are in Maryland. What is the procedure and any tax and/ or fee implications.

Thanks
Submitted: 4 years ago.
Category: Tax
Expert:  Megan C replied 4 years ago.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

When you transfer from one LLC to another, it is a tax-free transaction. The only fees you will pay are your deed fees, which are typically nominal. These will be set by your county. I haven't seen them higher than $10 per page.

Your properties will keep the same tax attributes - no gain or loss is recognized. You will continue to pay the tax from the property on your individual tax returns.

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Customer: replied 4 years ago.

Do I go to the county office and fill a transfer form to transfer the property from one LLC to another and pay the fee?

Expert:  Megan C replied 4 years ago.
You will file a Quit claim deed. You can find a template online or have an attorney draft it for you. Basically it's signing the property over. You will need to have it notarized, but your bank will normally do that for free.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid, but the Web site will still collect your payment. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site**