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

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

Hempstead, NY -

Attorney Answers (4)

Richard J. Chertock

Richard J. Chertock

Real Estate Attorney - Melville, NY
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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Noah D. Cohen

Noah D. Cohen

Real Estate Attorney - Brooklyn, NY
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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Kermit M Milburn

Kermit M Milburn

Real Estate Attorney - Shawnee, OK
Answered

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

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Jeffrey Jose Estrella

Jeffrey Jose Estrella

Criminal Defense Attorney - New York, NY
Answered

Hire a lawyer to protect your legal rights.

Jeffrey J. Estrella, Esq.
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The Estrella Law Firm, P.C.
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Jackson Heights, NY 11370
T. (347) 628-2391
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