$250k/$500k capitol gains deduction through LLC? yes/no

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$250k/$500k capitol gains deduction through LLC? yes/no

Jared B.
General Contractor · Torrance, CA · Member since 2008 · 74 posts · 2 votes

Buying property with my father to develop. Some questions:

Is there a way that my wife and I could still garner the $250k / $500k capital gains benefits (after living there for 5/5 years) as an LLC?

Also, my understanding is we should own the property in "joint tenancy" with "right of survivorship" is this necessary with an LLC? Is there a better way?

AGAIN, I'm hoping shortening this will get me more input. Thanks to anyyone for any help.

JB

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  • Toby Munk
    Residential Real Estate Broker · Aspen, CO · Member since 2008 · 155 posts · 4 votes
    18y

    The capital gains exemptions are for primary residences. You will need to have lived there 24 months out of the last 5 years.

    Not sure how it would work in an LLC. But if it is investment property it will not matter.

    This is not tax advice, just my opinion.

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    My real estate attorney told me that you can NOT get the exemption if the property is owned by a LLC.

    Mike

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