Can I rent my house to myself?

Discussion in 'US Taxes' started by miamicuse, Aug 21, 2005.

  1. miamicuse

    miamicuse Guest

    Can I rent my house to myself and in effect turn it into an
    investment property?

    I will pay myself a rent and declare it as "income".

    But the lawn cut, pest control, roof repair, plumbing and
    electric, landscaping and a major kitchen improvements I
    plan to make will be expenses right? Insurance too?

    The answer is most likely no. I just want to know why not?

    Thanks,
     
    miamicuse, Aug 21, 2005
    #1
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  2. miamicuse

    Wayne Brasch Guest

    "miamicuse" <> wrote in message
    news:...
    > Can I rent my house to myself and in effect turn it into an
    > investment property?
    >
    > I will pay myself a rent and declare it as "income".
    >
    > But the lawn cut, pest control, roof repair, plumbing and
    > electric, landscaping and a major kitchen improvements I
    > plan to make will be expenses right? Insurance too?
    >
    > The answer is most likely no. I just want to know why not?
    >
    > Thanks,
    >


    Of course, not. Use a little common sense on this matter.

    Wayne Brasch
     
    Wayne Brasch, Aug 22, 2005
    #2
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  3. miamicuse

    Paul Guest

    "miamicuse" <> wrote
    > Can I rent my house to myself and in effect turn it into an
    > investment property?
    >
    > I will pay myself a rent and declare it as "income".
    >
    > But the lawn cut, pest control, roof repair, plumbing and
    > electric, landscaping and a major kitchen improvements I
    > plan to make will be expenses right? Insurance too?
    >
    > The answer is most likely no. I just want to know why not?




    The answer is no.




    --
    Paul A. Thomas, CPA
    Athens, Georgia
     
    Paul, Aug 22, 2005
    #3
  4. miamicuse

    Dan Guest

    This is up there with me asking the county clerk if my speeding ticket
    was deductible :) Worth a shot, but certainly a big fat red flag.

    Dan

    On Sun, 21 Aug 2005 13:44:20 -0400, "miamicuse"
    <> wrote:

    >Can I rent my house to myself and in effect turn it into an
    >investment property?
    >
    >I will pay myself a rent and declare it as "income".
    >
    >But the lawn cut, pest control, roof repair, plumbing and
    >electric, landscaping and a major kitchen improvements I
    >plan to make will be expenses right? Insurance too?
    >
    >The answer is most likely no. I just want to know why not?
    >
    >Thanks,
    >
     
    Dan, Aug 30, 2005
    #4
  5. miamicuse

    Chrisq

    Joined:
    Nov 10, 2012
    Messages:
    1
    You should be able to rent a house owned by a company

    Most of these replays forget about the depreciation expense. Also what you would want to do is lease the house from the LLC that owns it. It would NOT be your home.

    If they take away the personal mortgage interest deduction, then moving the home into an LLC, the LLC would still have the interest as a legitimate business expense. You would be a member of the LLC that owns the home. If the LLC lost money, that would reduce your income.

    Legitimate business expenses include:
    Depreciation of the building over 27.5 years
    Depreciation of any equipment the LLC owns
    Interest
    Repairs
    Maintenance
    Cost of collections
    Banking expenses
    Office expenses
    Any salaries for employees of an LLC
    Utilities
    Telecomm bills


    The LLC should be setup to own and lease homes.

    This actually happens today. You may already be an owner of a real estate investment trust and be renting in an apartment complex the REIT owns...

    Chris
    MBA
     
    Chrisq, Nov 10, 2012
    #5
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