Renting to Yourself

[Roger Laughary]

Hi all, Does anyone rent to one of their own properties? Is this a benefit? Is there any benefit to having your LLC own your primary residence and renting from it? Thanks, Roger

[Linda Weygant]

Business transactions must be at arms' length.  Otherwise the IRS disallows it.

In other words - renting to yourself (even via an LLC) would be considered tax fraud as you would be converting items that are normally not deductible personally (depreciation, repairs and maintenance, utilities) into a deduction and this would never hold up in tax court.