primary residence as an asset

[Bryan C.]

I am working through some of the intricacies of establishing my new business. I am working with professionals to set myself up for a strong 2016 but have some interesting questions I am thinking about. I do not need income from my business and want to add funds throughout 2016 and beyond until I build it into a sustainable model. I plan to move my current 100% owned rental into an LLC, add some funds, leverage both to purchase more, and create a good "story" on paper throughout next year to attract more investment money.

My question is this- Has anyone looked into moving their primary residence into the business and renting it out themselves personally? In my situation it would create a much larger asset line and profitability statement as a new investor. Am I missing something?

[Linda Weygant]

Originally posted by @Devin Beverage:

Are you suggesting putting your home in the LLC and technically renting it to yourself?

This was my question as well. If this is what you're suggesting, this would not be an appropriate usage of the tax code. The owner and tenant of a rental property must be arms' length in order to legitimately be considered a rental. An LLC and any of its members are not considered arms' length.