Should you buy an office and rent it to your business?
Be careful! If you don’t know what you’re doing you could be engaging in a “self-rental” that limits your loss deductions and taxes your profits.
In other words, handle things the wrong way and the IRS can get you coming and going.
The good news? There’s a solution, and you’ll find out what it is when you read my new article titled Tax Tips: Renting the Office to Your Business Creates a Self-Rental Trap That Crushes Tax Deductions.
Three ways our fact-filled article can help you:
- We’ll tell you how to stay out of the IRS’s gun sights. You may not pore through the IRS Audit Guide but we do. And that’s where we learned that self-rented property is a frequent audit adjustment. Want to see what the IRS says on the subject? You’ll find out when you read the full article.
- We’ll explain the important “Self-Rental Rule.” When this rule applies, the IRS deems rental income as non-passive and any losses as passive. This means you get the short end of the stick if your rental produces an income or a loss. You’ll get the whole story when you read the full article.
- We’ll show you how to make “Self-Rental Rule” problems disappear. When you learn how to handle things the right way, you won’t face passive loss rules, real estate professional rules, material participation rules, at-risk rules, or rent collection problems. Get the facts when you read the full article.