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Updated over 4 years ago on .
Is there a way around the 'due on sale' clause
In a few years I plan on moving to a new (more expensive) primary residence and turning my current house into a rental. I also want to form an LLC but I know that if I transfer the rental into the LLC it can trigger the due on sale clause. I read somewhere that you can sublet your house to your LLC. Could I have tenets sign a lease with the LLC but I still technically own the house? I know I wouldn't have the legal protections that the LLC can offer but I might be able to still get the tax benefits?
Thank you for your help!