Hi BP community!
We own a house that we lived in for greater than 2 years...we have heard about the capital gains tax rule that says you don't have to pay capital gains tax if you lived in the property 2 of the last 5 years if you sell the home and make a profit. We put our former primary residence in a LLC to protect our other assets while using it as a rental,( we are the only memebers of the LLC and the only thing in the LLC is this house). My questions are as follows: since the property is in the LLC now... will we have to pay the capital gains taxes? Will taking it back out of the LLC and putting it back in our names make any difference?
Any advice would be helpful...don't think we want to sell it if we would have to pay capital gains.