Thanks! I would finance house under LLC upon sale. All other properties are financed this way. It would also allow me to cash out the equity by selling it to the LLC, who would be paying fair market value for the property. My sale to the LLC should qualify for exclusion from capital gains when selling primary residence- but yes, I understand the LLC would incur applicable capital gains when it sold the asset at some point in the future. The insurance may be slightly higher, but it would be an LLC business expense, and the increased insurance cost is marginal, that wouldn't be a big hit overall - in fact would probably have benefit as none of my insurance is deductible now on this property. The homestead exemption would be eliminated, but again, it's marginal. The insurance would be deductible, as the property taxes and mortgage interest would be, which would more than offset the marginal increased operating costs, which would now be deductible and would not be under new laws. While capitol gains may have an impact, unless property appreciates measurably in the next 15 years- the ability to deduct interest, insurance and property taxes, (all which will now be eliminated under new 2018 laws), would more than offset the 15-20% gains hit the LLC would take upon dissolving the asset in 10 - 15 years, (assuming no additional changes, LOL:)). I can't find anything that forbids this type of transaction - but thought someone here might see something I've missed.
