USA Tax Status

Joined
Mar 27, 2016
Messages
1
Reaction score
0
Country
United States
I live in Tennessee. About 15 months ago we created a wedding rental business. We lived in our home (home #1- 2400 sq/ft) and worked out of it until the inventory grew too much for our home. We purchased home #2 (1507 sq/ft) when we realized our business needed additional room. We did sell home #1. We purchased a much smaller home - primarily because it had a large 1500 sq/foot warehouse building behind it. The property is zoned multi-use (commercial-residential). The prior owner was using the home as an office.

We've done all the things to make sure its not a hobby business - commercial/liabilty insurance - registered with the state as a business (H&W sole proprietorship) - pay state sales & use taxes (we have an blanket tax exemption certificate, etc.

But now we're trying to figure out the tax impactions. We purchased the property for its commercial purposes - but happen to live on the property, as well. We have a home office in the residence (10% of livable space) but our business inventory is all over the house, as well, including most of the attached garage.

My question is , how can we get the best tax use from the property. Should we consider it fully commercial - and rent the home from our business (which is ourselves)? For tax purposes how should we treat the home, all of its expenses and the taxes and upkeep
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top