I am considering setting up an LLC for my businesses, and I would like to transfer business real estate to the LLC. Would I have to pay capital gains taxes to do the transfers? I want to just give the properties to the LLC.

Also, what if I later dissolve the LLC, and want to give the properties back to myself? I might want to do this at retirement age, and sell the properties. Under current laws, would there be capital gains involved with that?

Thanks,

Kathy

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Originally Posted by kclaytor

I am considering setting up an LLC for my businesses, and I would like to transfer business real estate to the LLC. Would I have to pay capital gains taxes to do the transfers? I want to just give the properties to the LLC.

Also, what if I later dissolve the LLC, and want to give the properties back to myself? I might want to do this at retirement age, and sell the properties. Under current laws, would there be capital gains involved with that?

Thanks,

Kathy

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No tax should be applicable. Stock is given for transfer of assets to LLC. No stepped up basis is allowed.

Agreed!