Looking Ahead
I am trying to look ahead - 2-5 years down the line and start planning for what I might need to be doing / or thinking about now.
I have lived in my condo for three years am now renting it and have bought / moved into another home. I understand that you have to pay cap gains when you sell unless you have occupied the home as a primary residence for the past two out of five years.
So, I know that I will have to sell it to someone in three years.
The question is this - Can I sell it to an LLC in three years? Will that avoid paying cap gains? What would be the long term effects of this? Say I sold it to my LLC in three years, but then two years down the road I really wanted to wash my hands of the property and sell it to someone - would I have to pay cap gains then?
Last question - if the expert advise is to sell it to an LLC then the question is - do I wait three years to make the transaction or do I make the transaction now? What are the implications of either?
I know I asked a lot of questions here - trying to get my arms around this and do good pre-planning!
Thanks in advance.
Are you proposing to sell this home to a LLC in which you are a member?
Yes
Thanks for the response. What would you reccomend doing to avoid cap gains?
Keep the house in your name and sell it before the three years elapse.