Need Advice: Capital Gain Tax in California

[Account Closed]

I wanted to tap into the advice from the group: we have a property that has turned into rental in early 2018 but was our primary residence for 5 years before that. If the house were to go on the market, would the gains be subject to the Cap Gain tax? 

The property is currently a rental and has been moved into an LLC early last year. Also, how difficult is it to sell a property from the LLC versus an individual ownership?

[Bryan Zuetel]

@Account Closed, you may be able to still apply the Section 121 personal residence exclusion if you lived in the property for at least 2 out of the last 5 years. So, based on your scenario, if you meet the other requirements of Section 121, yes, you may be able to exclude capital gains of $250,000 if individual or $500,00 if married couple. The transfer to an LLC may present problems if there are any additional members that weren't on the original title/living in the property.

The sale of a property in an LLC is not overly difficult, if the Realtor or parties understand the additional steps.