At present, I own my home...I am planning on forming a LLC, which will be an asset management company...at that time, can I sell my home to my company or would I have to transfer it over to it?
2007-07-02 14:53:23 · 4 answers · asked by dorsey77 1 in Business & Finance ➔ Small Business
Are you talking about your personal residence? Transferring your personal residence into a company can cause you to lose out on your gain exclusion when you sell your home. It can also cause you problems with homestead exemption (in Florida at least). I really need more info on this one.
2007-07-02 14:59:01 · answer #1 · answered by JaretR72 2 · 0⤊ 0⤋
Why would you want to put your personal asset in your LLC? Generally speaking, it's a bad idea to put an appreciating asset in a corporation because you lose the favorable capital gains rate if you sell. By putting your home in, that's kind of like a double mistake because chances are when you sell your home, there won't be any capital gains anyway.
Just curious-what's your logic on doing that? Maybe we Yahoo-ers would be better able to answer your question if we understood what you were trying to accomplish.
2007-07-02 14:59:42 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
I'd consult a tax specialist in this realm and lawyer
2007-07-02 14:58:04 · answer #3 · answered by Mike Frisbee 6 · 1⤊ 0⤋
Yes, you can, but be sure that's really what you want to check. Check with a tax accountant.
2007-07-02 15:25:04 · answer #4 · answered by jdkilp 7 · 0⤊ 0⤋