New Port Richey, FL asked in Real Estate Law and Tax Law for Florida

Q: I have an LLC owned by my trust. Does it make sense, tax purposes wise, to rent my home to my company?

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1 Lawyer Answer
Phillip William Gunthert
Phillip William Gunthert
  • Orlando, FL
  • Licensed in Florida

A: Having an LLC in a Trust is a bad idea for starters, now all the assets in Trust are also exposed to any liability that arises related to the LLC. Also, renting your home to Your LLC is also a terrible idea, now your home and LLC and entire trust are exposed to potential liability and you may have impacted or ended any Homestead Protections that your home may have had under Florida Constitution and Laws. Keep Business, Homestead and Personal life separate, you are commingling everything and potentially exposing everything. I would advise that you also speak with your tax preparer as well to address any perceived tax savings you believe you may be creating aside from all the liability issues and exposure you are creating. I will further note, any LLC should also not be a single member LLC, (Look up piercing corporate veil laws in Florida for further insight and reference on issues that could potentially arise).

Anthony M. Avery agrees with this answer

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