My wife and I bought a house and we are planning to rent partial of house through Airbnb. However, we were asked by our city to setup an LLC and then rent partial house through Airbnb. That mean although my wife and I still own the whole house, but the LLC is running the partial house renting business in Airbnb.
Does this (LLC running Airbnb renting) will affect the $500,000 principle residences capital gain tax exemption in the future when we sell it?
Thank you.
