Tax Benefits for Primary Residence Owned in an LLC

[Kevin Glover]

I am looking to purchase two properties in the Phoenix area. Both are in the same subdivision and one would be a rental while the other would become my primary residence. For liability purposes, I would like to hold both properties in a corporation. Now, I know that with your primary residence, any equity (up to $250,000 if single) is yours tax-free if you've lived in the home for two of the last five years as your primary residence. Would I still be able to take advantage of this tax benefit if I held my primary residence in an LLC?