Is it a taxable event to transfer title to real property in NY from an individual to an LLC for zero money?

Asked over 1 year ago - Hempstead, NY

Looking to transfer title to real estate from an individual to an LLC...the LLC will hold the real estate indefinitely (essentially renting it out and using it for the benefit of family). Is there a tax involved there in NY or IRS? Thanks

Attorney answers (4)

  1. Richard J. Chertock


    Contributor Level 17


    Lawyers agree

    Answered . If it is transferred for zero consideration there should be no taxes due at the time of transfer. The LLC would get the property at the individual's basis. Consult with an accountant or a tax attorney.

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  2. Noah D. Cohen

    Contributor Level 11


    Lawyers agree

    Answered . There is no transfer tax due provided the transfer is a "mere change of identity". That is, all of the parties who own the property individually are the same parties as the members of the LLC. Further they must own the same percentage interest of the LLC as they held as individuals.

    As the the State or Fed tax, I don't believe it is a taxable action, but you must check with your accountant.

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  3. Kermit M Milburn

    Contributor Level 8


    Lawyers agree

    Answered . As long as no money is paid for transfer from an individual to an LLC owned by the individual there is no tax

  4. Jeffrey Jose Estrella

    Contributor Level 13

    Answered . Hire a lawyer to protect your legal rights.

    Jeffrey J. Estrella, Esq.
    Licensed Attorney and Counsellor At Law/Abogado y Licensiado
    Licensed in New York, New Jersey, and Connecticut
    The Estrella Law Firm, P.C.
    75-20 Astoria Boulevard, Suite 170
    Inside The Bulova Corporate Center
    Jackson Heights, NY 11370
    T. (347) 628-2391
    F. (718) 672-4728

    The answers posted herein are not legal advice and no attorney-client relationship exists. Call for a free 20... more

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