renting out office to your LLC

Unless I'm missing something this doesn't really make any sense. You'd get a deduction, but you'd have to claim income as well so it seems you'd be worse off because if you just take the home office deduction there is no income attached to it. Only way I can see it as a better deal is you could bring in more expenses be "renting" it, but I would think that wouldn't really fly under audit.

I'm just thinking out loud though so maybe someone else can bring more clarity.

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if you just take the home office deduction there is no income attached to it.

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Any recapture considerations? Maybe?

Not sure, i know a guy who said he rented to himself as well. When I questioned it and asked him to explain he couldn’t. Definitely seemed sketchy, and futile at best.

A lot of people buy a building and put it in an LLC, then pay rent to the LLC from their "operating" company. Perfectly legal and above board. You get to pass income from one company to another, and take a lot of expense out of the LLC.

IRS Section 280A(f)(1) of Internal Revenue code allows you to lease portions of your home to your business for the purposes of marketing your company or training of employee's. You have to get your home appraised and you can rent your home up to 13 or 14 times per year. Depending on the size of the home you can rent about 80% of it. You basically pay yourself the rent and the marketing company is paying the tax at a much lower rate, (now 21%). Complicated but legal. Set up a marketing company as a C Corp and you can pay yourself OT pay, salary, pick up meals and alcohol, (2 times per week). Lots of hidden jewells in the tax code.

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A lot of people buy a building and put it in an LLC, then pay rent to the LLC from their "operating" company. Perfectly legal and above board. You get to pass income from one company to another, and take a lot of expense out of the LLC. IRS Section 280A(f)(1) of Internal Revenue code allows you to lease portions of your home to your business for the purposes of marketing your company or training of employee's. You have to get your home appraised and you can rent your home up to 13 or 14 times per year. Depending on the size of the home you can rent about 80% of it. You basically pay yourself the rent and the marketing company is paying the tax at a much lower rate, (now 21%). Complicated but legal. Set up a marketing company as a C Corp and you can pay yourself OT pay, salary, pick up meals and alcohol, (2 times per week). Lots of hidden jewells in the tax code.

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Say what! can you do my taxes, or recommend someone in BR?

LINK

it looks like you dont pay income taxes on rentals less than 14 days. but how is that the case for things like airbnb?

Then you can write off the expense

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it looks like you dont pay income taxes on rentals less than 14 days. but how is that the case for things like airbnb?

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ahh see what you are saying now. Treat it as a rental for less than 14 days. Still seems like a pain because the rent would have to be FMV so it's not like you could rent it to yourself for 10k a day.

I wasn't putting 2 and 2 together at first, but still seems like a pain for little reward. And in the chance of an audit you'd have to have much better records than the home office expense.

It’s a great way for self employed to save money on taxes. Dr’s, lawyers, consultants and small business owners are best suited for these strategies, but not if you are an employee. We saved $127,000 in taxes in 2017 using these strategies. I have some info on this if interested

Yes please send to me also

If you could include me as well...

moots04 at gmail dot com

Thanks!

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