Legal Question in Real Estate Law in District of Columbia
Transfer Tax Necessary?
My CPA has advised me to transfer my home to an LLC until my children our of age due to illness and mounting debt. He informed me to do so would cost $10,000 in a transfer tax. I think he is mistaken. If I am not selling the property only changing the deed to show LLC as the legal property owner, why would transfer tax apply?
1 Answer from Attorneys
Re: Transfer Tax Necessary?
Your CPA is quite likely correct regarding your having to pay a tax for this kind of transfer of real property; many jurisdictions require it
even though as you point out the essential ownership of the property has not changed.
However, if your CPA is recommending this change as a means of protecting this property from possible claims of creditors at some future time, he is utterly mistaken; an LLC provides no shield whatsoever from such creditor claims.
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