Legal Question in Real Estate Law in Virginia

Re: deed transfer

If I understand the situation, it is pretty simply, really.

I understand that there is a corporation with 2 owners. You are dissolving the company and are involved in what the law calls "winding up" the corporation.

(I assume it is a corporation because that is how it would be in a different name from your own names, in most cases.)

So, the corporation simply needs to write and execute a deed in which the GRANTOR is the corporation's name and the GRANTEE is the name of the 2 people. (You may want to consider splitting the property while you are at it.)

If forced to identify it, you would call this a deed by gift.

However, this is simply a distribution to shareholders. It shouuld not be a taxable event (or not taxed completely) because you are in effect surrendering your shares of stock and receiving in return the land owned by the corporation plus whatever other assets are left. This is like a dividend, but because the corporation is winding up and terminating it might not be counted as all profit, but as RETURN OF PRINCIPAL.

If the land has greatly appreciated in value, then you might owe taxes on the increase.

Obviously on the question of taxes you should consult a tax professional. I am giving you only a very shallow view to point out some issues you should explore.