Transfer of single family rental property from one SMLLC to another SMLLC

Forum|Forum|1 year ago
October 1, 2024
2 replies
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I have a Single Member LLC ("SMLLC"), let's call it ABC LLC, owning a midterm rental property in TX. Due to various reasons (anonymity is one of them), I am contemplating to transfer this property to another SMLLC, let's call it DEF LLC, then terminate ABC LLC after the transfer is complete. Is this a taxable transaction?

Not A Product Question

Anonymous_

Employee

@CuriousDom wrote:

Is this a taxable transaction?

No. There are no income tax ramifications since both LLCs are single-member LLCs and, as such, are disregarded entities for federal income tax purposes.

Mike9241

if there's a mortgage make sure to check with them.

CuriousDomAuthor

Great point. To continue this train of thought, if it applies to anyone, don't change the ultimate owner (say from just yourself to you and your wife) as it can avoid title insurance policy.