Should You Protect Your HOME With an LLC

From an asset protection standpoint, I would love to put personal residences into an LLC. There’s two great tax benefits from having the personal residence, which is your, you know, the mortgage deduction and also the capital gains, you know, the exclusion for the capital gains. Do I lose any of those tax benefits if I put my personal residence into that LLC? What say you, Eric? There is nothing in the law that disqualifies you from getting the personal residence exclusion if it’s in an LLC. You have to meet the other requirements, which are you have to have lived in there for the last two out of five years as your principal residence. So having it in an LLC, as long as you’re still ultimately the owner, right, because you have to own the property too, that LLC is going to be disregarded for a tax purpose anyway. Even if it’s husband and wife in a lot of states, you don’t even report the LLC anywhere. It’s like it doesn’t exist from a tax perspective.

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