Can I transfer my current property to LLC to reduce the liability risk ?

[Mac674]

Hello,

My wife and I just purchased a house at Seattle, WA weeks ago, we are living in the main floor and planning to rent the basement through Airbnb. We also planning to setup an LLC for Airbnb to reduce the liability risk. I would appreciate your help for my questions:

1. We already purchased the house under our personal name, can we transfer partial of the house (basement) or the whole house to the LLC to reduce the liability risk?

2. If yes to question 1 (transfer partial or whole house to LLC), will this transfer affect our principal residence tax benefit ($500,000 tax free capital gain when sell)?

Thank you in advance.

[Helen3]

I would speak to your accountant/tax accountant/legal adviser @Mac674