Rental Property Transfer to LLC - Posted by chill

import · January 22, 2003, 9:59am

Posted by Sam on February 08, 2003 at 11:42:52:

I think if you read Albert Ford’s question dated 1/24/03… “LLC- Can it be that simple??” and follow-ups you will find your answer.

import · January 22, 2003, 9:59am

Posted by chill on January 22, 2003 at 10:59:35:

I have a rental property in my own name. It has a loan balance outstanding, but I want to refinance it anyway because the rate is too high. Also, the property has gained in value, so I could refinance and take cash out and still leave it financed at 80% to value.

Would it be better legally and tax-wise to transfer the property to LLC first and take my cash, then refinance it? Or, should I contribute it to the LLC and then seek a new loan through the LLC and if so, could I refund the cash (as capital return to owner)?

It’s a good property to keep, but I don’t want to have too much equity in an LLC, and I’d like to get the property out of my own name.

Thanks.