Good morning! I'm planning to start renting out my primary residence and would like to quitclaim transfer the deed into an LLC (just me and my wife). We may sell the property after 2 years. Will we lose the primary residence capital gains tax advantage if we transfer the deed into an LLC? The mortgage will still be under our names.
Similar question, we'll be moving into our rental property where we already quitclaim transferred the deed into an LLC (me and my wife). We may also want to sell this property after living in it as our primary residence for 2 years. Will we be able to take advantage of the primary residence capital gains tax advantage or do we need to quitclaim transfer it back into our names?
Don't try to collect all these fancy sounding words you heard on some podcast. Before trying to implement any of them, the first question should be: what exactly is the purpose? The answer: no purpose whatsoever in your proposed "quitclaim transfer the deed into an LLC."
Next thing: your capital gain exclusion. You can rent the property for 3 years after moving out and still protect your exclusion. Moving back into the property will mess it up, but if you need to move back, then move back.