Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 9 years ago,
Do you pay yourself rent?
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?