Why do rich people place their personal homes under an LLC and treat it like a business ?

Question

Why do rich people place their personal homes under an LLC and treat it like a business ?

Answer 1

because it limits there responsibility if the ever have a lawsuit

field against them, they can write off the home as a office, they can write off a portion of their utilities such as gas, water, trach, light,and even the money the pay for their  rent

Answer 2

A corporation that owns property can receive a tax deduction for maintenance and expenses, whereas an individual cannot.  However, setting up and maintaining a corporation is costly and the average home owner would not save enough to make it worthwhile.  This is why only people with very expensive homes do this.

Answer 3

They never do that.

If the house is owned by an an LLC, it is not their personal home. It is business property.

Answer 4

tax evasion or they could do it to protect it they get sued

Answer 5

I don't believe they do.  A trust maybe.  They may have a percentage of their home treated as home office for a tax deduction on their individual taxes when they do their corporate or business taxes.

If I were rich and famous I would have a trust hold ownership of my home if I didn't want anyone to know what I owned or where I lived.

Answer 6

People usually start LLC's because personal assets can not be taken away when the LLC defaults. When an LLC goes under only the assets of the LLC are at risk. You're personal assets like your house and car are not.

I do not beleive its possible to put your assets under an LLC. Thats like someone trying to protect their assets by severoring them from personal ownership. Doing this means I can make a million dollars a year bu my house being its own legal entity (LLC) makes no money. This means property taxes are a yearly expense which can be used as justification for selling the house at a loss if sold. It sounds to me like a shady way of avoiding paying capital gains tax.