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Updated about 13 years ago on . Most recent reply presented by

User Stats

74
Posts
8
Votes
Jeremy D.
  • Investor
  • Grand Rapids, MI
8
Votes |
74
Posts

Leasing to yourself?

Jeremy D.
  • Investor
  • Grand Rapids, MI
Posted

Quick question about tax implications of leasing to yourself. I am a 60% owner of an LLC with 20 or so rental units in it. If this LLC were to buy a property and rent it to me, would this be a problem tax wise?

Here is what i am thinking... The mortgage interest + taxes + HOA fees + depreciation = $2,100/mo. I would personally sign a lease with the LLC and pay $1,500/mo in rent. The remainder would be a taxable loss by the LLC.

Is this ok? $1,500/mo is a fair rent for this property. I can justify the $600/mo taxable loss because a portion of the property would be used as an office for the LLC.

Is this smart/stupid/illegal?

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