LLC or Not The Ultimate Guide for Homeowners

Jake Claver

Are you a homeowner wondering if you should put your home in an LLC? In this video, we'll break down the pros and cons and help you make the best decision for your specific situation. Don't miss these tips for homeowners!

Transcript

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.

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