LLC or Individual

[Diondra Brown]

I am looking to build a duplex or triplex. I will be living in one of the units. I plan to use a fha loan to build if I can. Would I be able to put the property in my business name since I'll be living in one of the units?

[Ned Carey]

@Diondra Brown It will be harder to fund a property owned in an LLC. Normally I would say that is part of the cost of doing business but if you are going to be liveing there, you give up a lot of benefits by owning in an LLC. Homeowners get preferential loan rates and a capital gain exclusion upon sale. The capital gain exclusion for homeowners is one of the best tax benefits available for any reason; business or personal.

Generally owning a property you live in by an LLC is not a good ideal.

I am not a tax accounting or legal professional. The above is my laypersons opinion and understanding of the law.