🏠💼 Are you considering holding your primary residence in an LLC? 💰🤔 It may provide privacy and liability protection but raises questions about capital gains tax. 💸
Here are some answers to common questions:
👉 What is a personal residence held in an LLC?
A personal residence held in an LLC means that the title of the residence is held in the name of a limited liability company instead of an individual’s name.
👉 What is capital gains tax?
Capital gains tax is the tax paid on the profit made from the sale of an asset, such as a personal residence.
👉 Are homeowners eligible for an exclusion from capital gains tax for their primary residence?
Under current rules, homeowners are eligible for an exclusion from capital gains tax for their primary residence, up to $250,000 for individuals and $500,000 for married couples.
👉 Does owning a personal residence in an LLC affect eligibility for the capital gains tax exclusion?
For a single-member LLC, owning a personal residence in an LLC does not affect eligibility for the capital gains tax exclusion. However, for a multi-member LLC, the analysis becomes more complex.
👋Don’t let tax questions deter you from making the best decision for your home and wallet.
📅 Book your free tax assessment with me today to learn more about holding your residence in an LLC and over 1,500 tax strategies available.