00:00Is it a good idea to place your home that you live in in an LLC?
00:04Our CPAs would advise against this.
00:06Transferring your primary residence where you live into an LLC can cause a lot of problems,
00:10one of which could lead to, well, they could all lead to negative tax implications.
00:14For instance, you might lose your homestead protection,
00:17which safeguards part of your property's equity and legal actions.
00:21Additionally, you could forfeit your homestead tax exemption
00:24and also the ability to deduct the interest on your home mortgage on your own taxes.
00:29It would also cause you to miss out on tax breaks or the capital gains
00:32when you go to sell your home.
00:34For your primary residence, probably not the best to move it into an LLC.
00:37However, rental properties and vacation homes,
00:40that's exactly when you would want to structure those inside an LLC
00:44because it would silo the risk if lawsuits were to happen on those properties
00:48away from the rest of your estate
00:49and not allow anybody to come after the broader real estate portfolio that you might have.
Comments