You can rent it to yourself and deduct it on your taxes.

You prevent the possibility of losing your house if you have a judgment against you.

Lots of times your LLC can qualify for small business grants and things.

(http://www.autoadmit.com/thread.php?thread_id=5807737&forum_id=2id.#49492942)

No, the claim is mostly false or highly misleading. Putting your primary residence into an LLC is generally not recommended by legal and tax experts, as it often creates more problems than benefits (e.g., losing tax advantages, mortgage complications, and higher costs). It’s far more suitable for investment or rental properties than a personal home. Here’s a breakdown of each point:

• You can maintain anonymity:
Partially true, but limited. Ownership records will show the LLC as the owner, not your personal name, which provides some privacy. Celebrities or high-profile individuals sometimes do this. However, full anonymity isn’t guaranteed—LLC filings in many states require disclosing managers or members, and determined parties (e.g., via lawsuits) can often trace ownership. It’s not as anonymous as people think, and it’s rarely a strong reason to do this for a primary home.

• You can rent it to yourself and deduct it on your taxes:
False—this is a common myth and usually a bad idea. If you “rent” your home from your own LLC:

◦ The rent you pay isn’t deductible on your personal taxes (it’s personal living expenses).

◦ The LLC reports the rent as income, and while it can deduct expenses (mortgage interest, property taxes, etc.), this often creates “phantom” taxable income with no net benefit.

◦ It can trigger IRS self-rental rules, complicate deductions, and cause you to lose personal home tax benefits (like deducting mortgage interest/property taxes directly on Schedule A). Many experts say this creates more tax headaches than savings.

• You prevent the possibility of losing your house if you have a judgment against you:
Mostly false for a primary residence.
LLCs provide strong asset protection for business/investment properties (creditors typically get only a “charging order” lien on distributions, not the property itself).
For a personal home, however:

◦ You often lose your state’s homestead exemption (which protects home equity from creditors in many states, sometimes unlimited like in Florida/Texas).

◦ A personal judgment creditor can often seize your LLC membership interest (since it’s a single-member LLC for most people), effectively gaining control.

◦ Better protection for homes usually comes from homestead laws, umbrella insurance, or trusts (like a Qualified Personal Residence Trust), not an LLC.

• Lots of times your LLC can qualify for small business grants and things:
False in this context. An LLC that merely owns and holds your personal residence isn’t operating a business—it’s not generating revenue or providing goods/services. Small business grants (e.g., SBIR/STTR, SBA programs, or state grants) require an active for-profit business, often with employees, innovation, or economic impact. A residential LLC wouldn’t qualify any more than you personally would, and it adds no advantage here.

Additional major downsides experts frequently mention:

• If your home has a mortgage, transferring it to an LLC can trigger the due-on-sale clause, forcing you to pay off or refinance the loan (often at higher commercial rates).

• You risk losing the mortgage interest deduction, property tax deductions, and the capital gains exclusion on sale (up to $250K single/$500K married).

• Higher insurance costs and potential loss of homeowner exemptions/rebates.

In summary, this strategy is widely discouraged for primary residences by attorneys, tax pros, and sources like Forbes, LegalZoom, and real estate experts. It can cost you far more in taxes, fees, and risks than any perceived benefits. Always consult a local attorney and tax advisor—rules vary by state, and this isn’t one-size-fits-all advice. For true asset protection on a personal home, options like strong insurance, homestead filings, or specific trusts are usually better.

(http://www.autoadmit.com/thread.php?thread_id=5807737&forum_id=2id.#49492950)

Most people stop at where their bank will not let them get a mortgage on it

(http://www.autoadmit.com/thread.php?thread_id=5807737&forum_id=2id.#49493082)