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Updated 12 months ago on . Most recent reply

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Eugene Thompson
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renting a property in my LLC name

Eugene Thompson
Posted

me and my lady has been renting a house in a residential neighborhood here in atlanta for two years. i want to renew the lease in my LLC name so i can get the utilities in my business name as well. The landlord said that its not zoned for business and that would raise flags with the IRS and i could potentially get audited. keep in mind that i have a consulting business. is there some truth to this because i do have a home office at the house as well. the rent is 1600 per month. that 1600 per month and utilities wouldn't be a tax write off to my LLC?

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Greg Scott
#3 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
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Greg Scott
#3 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
Replied

I don't see a reason a lease couldn't be written to an LLC. We have rented to both businesses that have traveling workers and churches that have traveling missionaries.

That said, trying to claim the place where you live as a business expense would probably be seen as tax fraud. 

If you have a room that you use as an office, you probably can deduct that portion of your total square footage as a business expense. On the other hand, you should be able to do that without your LLC being on the lease.

  • Greg Scott
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