When I deed rental property from my personal name to my LLC, on the consideration if I put a recitation of nominal consideration of $10, would this be considered a sale or a capital contribution?
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When I deed rental property from my personal name to my LLC, on the consideration if I put a recitation of nominal consideration of $10, would this be considered a sale or a capital contribution?
Since no money is being exchanged, how would I word the recitation if it’s simply a capital contribution?
Asked on July 15, 2019 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Assuming the rental property has value (e.g. is not "underwater" or in a position of negative equity) it's a capital contribution. As for the recitation: what recitation are you referring to? You don't need to have a recitation of why property is changing hands.
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