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?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 1 year 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption