Limitations to Writing Off Home Expenses as an Office

[William Pieper]

My business partner and I have an LLC in Missouri. We currently have four rental units and have completed one flip. We expect to have ~$200,000 in revenue this year and ~$60,000 in profit. We are weighing the pros and cons (including legal implications) of purchasing a home under the LLC, both of us rooming there, and writing the cost of the property off as a loss. The intention would be to pay zero or little "rent" to the LLC. What are the potential legal issues with doing this?