Selling my personal residence to my LLC.

[Joshua Anson]

We are getting ready to move from our home we have been there 7 years and are looking to use it as a rental. My question is can we sell it to our LLC and use the profits to purchase our new home, or will it reduce our asset protection since the LLC is a pass through with just me in it.

[Ashish Acharya]

Originally posted by @Joshua Anson:

We are getting ready to move from our home we have been there 7 years and are looking to use it as a rental. My question is can we sell it to our LLC and use the profits to purchase our new home, or will it reduce our asset protection since the LLC is a pass through with just me in it.

SMLLC is disregarded for tax purpose, so you cant sell house to yourself from tax perspective. 

Legal side, you can legally sell it but asset protection needs to be disconnected with an attorney, if that’s your main goal. There are other ways to better structure this with trusts. 

Why do you want to sell it? This does not do you any good from tax perspective. 

If you were trying to preserve sec 121, there are other ways to handle this correctly either by waiting 3 years or selling to controlled corp. 

Work with a professional please