How to avoid the “self-rental” trap

Do you rent property to your business?

Then be careful. You see, under the IRS’s “self-rental” rule, you could lose money in two painful ways.

1. You could forfeit the juicy tax breaks you’re expecting.
2. You could wind up paying unexpected taxes.

And remember, this is true even if you create a separate entity that rents the property to your business!

What can you do to avoid these costly problems?

Easy. Read my new article titled Tax Tips: Renting Property to Your Business? Avoid This Trap That Destroys the Tax Deduction!

Three ways our fact-filled article can help you:

1. You’ll learn why the IRS is waiting to pounce. The IRS guide to tax audits states that self-rented property is a frequent “audit adjustment.” You see, Uncle Sam is worried that you might improperly jack up the rent to generate income you can use to (unfairly) absorb your passive losses. You’ll get useful insights into IRS tactics when you read the full article.
2. We’ll explain how the law’s self-rental rules work. This onerous rule applies whenever you rent property to a business in which you and/or your spouse “materially participate.” The law’s impact? It considers any self-rental income as non-passive, and any losses as passive. Which means you lose either way. We’ll give you all the details when you read the full article.
3. We’ll tell you how to come out a winner. Yes. There is good news. You see, you do have options that will let you side-step the self-rental rule and keep those nice big deductions. You’ll get all the facts when you read the full article.