Can a taxpayer sell their former primary residence to an owned entity (S corporation, LLC, etc.) to take advantage of the section 121 gain exclusion?

[chavon1]

MFJ taxpayers have rented their former primary residence for the last 2.5 years. They would like to keep the home as a rental going forward, however they will lose their section 121 exemption at the end of this year. Can the taxpayers sell the home to an entity that they have ownership of (S. corp, LLC, etc.) to transfer basis and take advantage of the section 121 exclusion?

[Accountant-Man · Accepted solution]

No.

[poolcleaner]

Succinct!