How Should I Title Any Real Estate I Own?

Commercial real estate, including residential rental properties, generally should be held by limited liability companies to protect you from potential liabilities connected with real estate, such as injuries occurring on the property or environmental damage while still preserving the beneficial income tax treatment of real estate. Your personal residence generally should not be titled in a limited liability company without considering the potential adverse income tax consequences, including loss of the $250,000/$500,000 income tax exclusion on the sale of your house.