We are looking at a live-in flip and want to make sure we're able to write off all the improvement expenses when we sell it. Is it best to have the property in an LLC or our personal names? I wasn't sure if we'd be able to deduct all the improvement expenses from our profits if it's in our own names-
Hi @Hen Ley
I found a thread that discusses the deductions of a live in flip (you may have to consult a real estate CPA/attorney regarding the LLC):
No difference in what you can expense when an asset is titled to an LLC or your name. Certain flippers benefit from an S Corp. If you are living in the place, likely not ideal, but discuss strategy with your CPA.
@Jeff Kao , Thanks so much for forwarding the thread!
Some jurisdictions will not give you a homestead exemption if your primary residence is owned by an LLC. Mine is one such jurisdiction.
Make sure yours isn't before you put the property in an LLC...