Transfer Realestate from corp & scrop to LLC

[TAX]

Client has one realestate property in crop (4 shareholders) and other one in Scorp (3 shareholders).

He wants to move properties into LLC.

(1) It is, generally, true that realestae should be owned by LLC. I think he has to take dist and pay tax

(2) In future he may want to add property

Thanks!

[Matt Sova]

Deemed sale

It is actually a deemed sale at FMV and tax paid on the gain. You cannot just distribute real estate from a corp., S or C.