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Updated over 9 years ago on . Most recent reply

User Stats

10
Posts
2
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Justin England
  • Anchorage, AK
2
Votes |
10
Posts

Do you pay yourself rent?

Justin England
  • Anchorage, AK
Posted

I have searched for this all day, but perhaps my google-fu or my insufficient REI lexicon isn't allowing me to find the right results.

I just purchased a fourplex and will be occupying while renovating. Two of the units need work, the other two are nicely upgraded. I haven't YET started an LLC, so I am currently just a personal entity - if that matters.

The question is: Do I pay myself rent? I am setting up Cozy right now and using myself as a test environment to see what my tenants' experiences will be, and the matter of rent amount came up. I will be collecting all rent into a separate, business-only personal checking account.

To me it seems like a big ouroboros, but perhaps you savvy investors can identify a well-known tax advantage or business/bookkeeping advantage to approaching this one way or another.  What say?

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