House inside of an LLC?


Generally speaking, for most people in Texas, it's not a good idea to put your house inside of an LLC for the following reasons:

(1) it would probably trigger the due on sale clause on your mortgage

(2) it could negatively affect your homestead exemption and thus creditor protection on your home

(3) It could nullify your insurance policy, or cause your insurance rates to increase

(4) it could cause you to lose your 1040 tax deduction for property taxes and/or interest deduction (but you'd need to discuss with your CPA, as we don't offer tax advice)

(5) it could negatively affect your property taxes.

Here are some helpful links from the Comptroller on Homestead Exemption FAQs https://comptroller.texas.gov/taxes/property-tax/exemptions/residence-faq.php and from the TX Property Cods Statue https://statutes.capitol.texas.gov/Docs/PR/htm/PR.41.htm



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Mike Massey JD, MBA, MPA just might be the 195th most interesting person in Texas. He has 4 college degrees and he's working on a 5th:  BBS Accounting; MPA Master's in Professional Accounting; JD Law Degree; MBA Master's in Business Administration; BBS in Biblical Studies (in progress).

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© 2020 Mike Massey Law.  Managing Attorney Mike Massey, 8911 Capital of Texas Hwy, Ste 3210, Austin, TX, 78759.  Email: mike@MyTxWills.com.  Phone: 888-407-2407.  Mike Massey, Texas Bar # 24032584. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established. Privacy Statement.  Prices can vary based on your unique situation and potential add-on services.  Prices for in-office (in person) meetings typically cost more than virtual meetings that are done over the phone instead of in person.  Prices for virtual estate planning do not include an execution ceremony or notary, as those services are not available with our discounted virtual estate planning packages.