LLC vs Revocable Trust
My primary residence is a townhome in a small HOA. In 2020, because our community had a pool and there were concerns about potential COVID-related liability lawsuits, I moved the home into a single-member LLC held inside an also created revocable trust.
Now I’m considering moving it out of the LLC and holding it directly in my revocable trust. The reason is that certain tax advantages—such as the IRC §121 exclusion for the sale of a primary residence, and other homeowner-specific deductions or protections(senior Discount, potential programs during disasters)—require the home to be in an individual’s name or a revocable trust, not an LLC.
While the LLC does provide liability shielding, I’m questioning whether that benefit outweighs the potential loss of tax advantages for a primary residence. Thoughts?
Posted Sep 6, 2025, 8:58 PM UTC