Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

11
Posts
2
Votes
Rick Dane
  • America
2
Votes |
11
Posts

If I own a property through a corporation can I rent to myself?

Rick Dane
  • America
Posted

So, this isn't a scheme to evade taxes, I'm considering two possible scenarios so just wanted to get a high level overview if this would make sense legally. I'm considering either buying a vacation rental property and renting it out on a regular basis but living there myself maybe half, or a bit more than half, of the year. I would like to buy the property using a corporation and then rent it out to myself as I think this makes more sense from a legal perspective since it would be rented out to others a good part of the year. The other scenario is buying a property with more than one house on it and renting one out as either a vacation rental or a regular rental and living in the other and then renting one of the houses to myself. My main concern around all this isn't taxation, it's liability as it seems to me it would be better, from a legal perspective, to not be renting out a home that I just own directly myself (not through a corporation). Any info is greatly appreciated!

Most Popular Reply

User Stats

1,830
Posts
3,390
Votes
Bill F.
  • Investor
  • Boston, MA
3,390
Votes |
1,830
Posts
Bill F.
  • Investor
  • Boston, MA
Replied

@Rick Dane If you care about liability, then the first question is "How much stuff do you have to protect?" as the saying goes, you can't bleed a stone. Second, judgments are only half the battle. Legal fees will still get paid even if you win. Plus law firms don't do defense on contingency, so you'll have to foot the bill along the way, even if you win a judgment in the end. 

Before I start thinking about owning things in entities, I'd look more into quality homeowners insurance and an umbrellas policy. 

Plus, unless you buy the property in cash, the entity will make financing much more difficult. 

Loading replies...