Option 2 is a tax event.

来源: 2022-12-06 06:29:00 [博客] [旧帖] [给我悄悄话] 本文已被阅读:

 

Title

Mortgage

Insurance

Current

LLC

You

LLC

Option 1

LLC

You -> LLC

Assumption of Mortgage

LLC

Option 2

 

(not recommend)

LLC->You

 

This is a tax event, trigger capital gain and tax reporting.

You

 

LLC -> You

Option 3

LLC

You

LLC -> You

 

Can you do this? All mortgage cares is being protected.

 

#2 is problematic because it is a tax event (transfer of control from LLC to A, when LLC is owned by unrelated people).  This triggers capital gain issue.  Because the control of the property is changed, this is  would trigger due-on-sale unless bank allows you to assume the old mortgage as well. 

I would suggest #1, assuming mortgage is not a tax event.