Can I rent my house to myself?


M

miamicuse

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,
 
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W

Wayne Brasch

miamicuse said:
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
 
P

Paul

miamicuse said:
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.
 
D

Dan

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
 
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Joined
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You should be able to rent a house owned by a company

"miamicuse" <nmbexcuse@hotmail.com> 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
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
 

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