Owner Occupied - Short Term Rental - Tax Deductions

[Austen Iverson]

Hello all, 

I have a house overlooking a lake in South Dakota. This is my primary residence & the mortgage is held personally on a 30 year note. I file for "owner occupied" status and have the mortgage interest fully/partially deducted on my tax returns. 

I found the demand for my house on short-term rental sites such as AirBnB & VRBO quite lucrative. I also have a single-member LLC with 5 other full time rental houses. I run my short-term rental business out of my personal house under my LLC, which I drew up a lease between that creates an agreement to pay for utilities, internet and common household products I need to function my business in exchange for the property. The only monthly bill my LLC doesn't pay for on my house is my monthly term installments for principal/interest/taxes.

Since my house is held personally, if I choose to have the LLC burden the payment to the bank, I'd have to declare that as "rental income". However, I'm looking into either Tenancy-In-Common (TIC) or Joint Tenancy-In-Common between myself & my LLC on the deed so the LLC can burden the payments.

If I get that switched over, then my personal income isn't affected (so I'm not paying post-tax dollars to my mortgage) & my LLC will show a loss, which will shield my personal income at the end of the year. But then when I go to sell the property down the road, I plan to use a 1031 to buy my next property. However, the payment would have been serviced by my LLC for X amount of years, which is 100% tax deductible.

Also, since it's still my full time residence, could I claim a portion of it to run/operate my LLC as my home office? What about mortgage interest deduction on the personal side? Seems far-fetched as it would be double dipping.

Thoughts? Has anyone else had experience with both their personal name and their LLC name on the deed of a property?