Free Tax Deductions

This seems too good to be true, but I haven't found any reason it will not work. I learned about this in a webinar.

If your business operates under an LLC, then your LLC can rent your personal residence for meetings or planning retreats, and deduct the "cost" as a business expense.  The cool thing is, as long as you rent your home fewer than 15 days a year, you do not have to report the income!

In my experience, hotel meeting rooms rent for $150 to $300 per day, depending on location and catering.  Let's say your LLC rents your home for 7 days in November and 7 days in December, at a cost of $300 per day. Make sure you write a check out of your business account and deposit it into your personal account. Also, make sure you hold meetings or engage in business planning during that time.  For a total of 14 days, your business will get a deductible expense of $4,200 and you personally will report no income.

Those in the 25% bracket save $1,050 in income taxes. Those in the 28% bracket save $1,176 in taxes, and those in the 33% bracket save $1,386. Plus, the expense reduces your self-employment income, to save another $642.60 in SE taxes.

If anyone knows why this is not allowed, PLEASE let us all know. I plan to use this on my 2016 taxes.