All Forum Posts by: Daniel Trost

@Matt Hoyos

What trouble or cost to sell to myself? I don't need an agent. I might get a proper evaluation for records but that's about it. There are no debts or liens, I own it free and clear. The advantages would be both savings in taxes on the capital gains, and a greater deductible year after year that would decrease my taxes on the rental income. 

I bought my first house in 2015 for 91k and moved right in. It was bank-owned and I bought it cash. It is now worth about 250k. I'd like to move to a different town and rent out that first house (both in Oregon). I'm thinking to start 2 LLCs, one just to hold the property, and the other as my rental business. My idea is to sell my house to the LLC biz (which I realize is a sole-proprietorship to the IRS), and take advantage of the Home Sale Exemption for those capital gains. Then, with the LLC having purchased at fair market value (250k) such that the annual depreciation deduction is much higher than it would be at my personal cost basis of 91k. Is this all legal?

Or does the LLC rental biz have to be a partnership?

Do I even need a second LLC beyond the one for holding the property since the IRS views it as a sole proprietorship anyway?

Any warnings? Something I'm missing?