@rnehrboss wrote:
Thanks for quick reply @Anonymous_.
Maybe I didn't give enought detail.
I no longer live in the home, and will turn it into a rental home. The LLC provides me libability protection etc.
If you want to protect your gain, you have to sell the home while you qualify for the exclusion, don't rent it more than 3 years. A single member LLC is a disregarded entity, in the eyes of the IRS, you would be selling the house to yourself and it would be a sham transaction. If you created a more complicated structure (S-corp, etc.) then you have to deal with the related party rules. The exclusion on capital gains tax for sale of a personal home was not created to enrich landlords.
While you can transfer the home to an LLC for liability protection, it won't change the capital gains tax you will owe when you sell the home, if you wait more than 3 years and don't qualify for the exclusion. Also, the LLC may not offer quite as much protection as you think, depending on your state.
I suggest you speak with an attorney and a tax professional.
