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Updated over 3 years ago on . Most recent reply presented by

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91
Posts
30
Votes
Jason Sung
  • Investor
  • Dallas, TX
30
Votes |
91
Posts

Title transfer to LLC after living two years. Capital gains tax

Jason Sung
  • Investor
  • Dallas, TX
Posted

Hi, As many of you know, there is primary home tax exemption saying 'You can sell your primary residence and avoid paying capital gains taxes on the first $250,000 if your tax-filing status is single, and up to $500,000 if married filing jointly. The exemption is only available once every two years.' I have a property I lived for 2 years as primary. If I move the title of the property to LLC this year, does it considered as sales transaction this year?

As a concrete example, suppose I bought the house at $100k two years ago and its value is $200k now. I do title transfer now to LLC, and I sell it next year at $300k. In this case, am I going to pay capital gains tax next year or not? Would appreciate any advice.

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