Rental income to run another business

[Account Closed]

Hi,

This may be a dumb question, but I was wondering if I can use my property rental income to fund my other business (i.e. construction company)?  Are there legal or tax problems associated with this?

Thanks in advance.

[Ashish Acharya]

You can do whatever you want to do with the money that you have already paid tax on. 

If you are running the rental activity via LLC or sole, the income is taxed even if you dont take it out of your bank account.

Meaning you would have already paid taxes on your income sitting on your bank account assuming the property is positive cashflow property.