How to transfer my Paid off home to my LLC?

[Raul Buitrago]

Hello,

Kids are gone and My Primary home is too big for my wife and I.

Here are the facts: We are in Texas. We already have a Series LLC with one Rental property (with mortgage).

Now, My Primary home is paid off. We would like to rent our Primary Home but we would like to do it under the LLC. What would be the best way to transfer our Primary home to the existing LLC (to avoid or minimize taxes)? Sell? Gift? Overtime?

Any help would be greatly appreciated Thank you

Raul

[Bill Exeter]

Hi Raul,

I thought that I should expand on what others have already said.  You qualify for the tax-free exclusion of up to $500,000 in gain as a married couple.  If you decide to rent the property out, you have a three (3) year window during which you can still sell your property and qualify for the tax-free exclusion.  However, once you have passed the three (3) year window, then the property becomes 100% rental/investment property and you no longer qualify for the 121 Exclusion.