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Updated over 2 years ago on . Most recent reply

User Stats

53
Posts
30
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Josh H.
  • Flipper/Rehabber
  • Northern Virginia
30
Votes |
53
Posts

Leasing Your Short Term Rental to Another LLC That You Own

Josh H.
  • Flipper/Rehabber
  • Northern Virginia
Posted

Hello,

I have heard of leasing your short term rental to another LLC that you own in order to minimize tax liability from a video that I watched, but there was no information given on why this is advantageous or the mechanics of it. Can someone please let me know a simple explanation of this and how it helps lower tax liability?

Most Popular Reply

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7,941
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
6,606
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7,941
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied

So, the above reply is not 100% accurate. We self manage and our CPA files a Schedule E. There are rules around which schedule you use. Easy to look up on the IRS site.

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