@Rockdog10 wrote:
Our lawyer told us it was unnecessary at the time, but I'm thinking it is more of a tax issue than legal.
Most likely due to the fact that the IRS would search the public records if they were really interested. The only other method would be for the IRS to send the responsible LLC member a letter asking for a copy of the deed(s) and, frankly, between the parties here (who are all technically related), any deeds could be drafted with a backdate and then sent in.
There are a lot of people who believe that recording a deed is required to effectively transfer title to real estate, but that is generally not true. Recording serves to give (record) notice to third parties as to who owns the property (it is matter of priority).
