Hello. I have a condo in Broward County, FL that my wife and I purchased about 15-years ago under our personal names. It has been rented since day 1 and cost basis is mostly depreciated. There is no mortgage on the property. To protect my personal assets, I'm considering moving ownership to a LLC, but concerned about tax consequences. Looking for some assistance with the below:
- Would I have to pay capital gains taxes on difference between depreciated cost basis and market value?
- Does it make a difference on taxes if it gets transferred to a single member LLC vs two member LLC?
- I called the county and they said if there is a name change (i.e. to an LLC), the assessed value will be reset, which would result in a pretty material increase in real estate taxes.
- Any other taxes if I proceed?
- Any other options that you'd recommend?
