gift of property a single person llc

What is the name of your state? connecticut.

- i formed a single person llc and my parents would like to quit claim a rental piece of propoerty to the llc as a gift.

- is this treated the same as a gift to an individual?
- what do we need to look out for?
- any advice on how to handle?

If they give you the property, your basis for depreciation purposes is their basis -- the amount they paid minus the amount they have already taken as depreciation. If you purchase the property for FMV, you get to depreciate starting with a new basis. You'd have to get a bank loan (owner financing won't work for this but they could cosign) & buy the house outright. However, they could give you $22,000/year from the purchase price, allowing you to pay the mortgage & still have money left over. They would have to pay taxes on the recaptured depreciation.

If they wait & will the house to you, you get the step up in basis but they don't have to pay taxes on it. (Assuming their estate is under $1M.)

Giving or selling the property to the LLC does not effect the tax treatment of the transaction.