Able to LLC if your rental is on your primary residence property?

[Jennifer Z.]

While looking more into asset protection, are you able to have your primary residence property in a LLC when it has a separate rental home on it? Or is it okay to just have a living trust as if it is not an investment property?

[Ashish Acharya]

@Wayne Brooks . you dont lose sec 121 if primary residence in within the disregarded entity( SMLLC). 

@Jennifer Z. , 

I know where are you coming from. You want to protect the home from the rental liability. However, house hacks cannot be shielded via LLCs. The very nature of house hack is comingling of the personal and business asset, thus putting it in the LLC doesn't make sense. A good insurance should work the same.