Residential Assisted Living - Tax write off Question?

5 Replies

Hello guys,

If I own a property and use it as a licenced (Residential Assisted Living) business, can I write off my property depreciation? Can I legally rent it to myself through a separate entity and write that off as well?

Navid

Originally posted by Account Closed:

Hello guys,

If I own a property and use it as a licenced (Residential Assisted Living) business, can I write off my property depreciation? Can I legally rent it to myself through a separate entity and write that off as well?

Navid

IRS hates self rentals. 

If you use your property as assisted living you can absolutely write off depreciation. 

I wouldn't self rent- I would just allocate your portion of the property as primary home and continue to deduct on your schedule A. 

Also, writing it to yourself wouldn't create a write off for it...it would be more income to it. 

Thank you Natalie.

Justin, do you know the demand for ''Rental Residential Assisted Living Facilities''? I plan on buying properties in the right locations and update them to meet the standards for the RAL facilities and rent them to operators.

Account Closed One of the biggest issues people run into with changing to assisting living facilities is meeting the handicap accessible requirements. 

Also, recently in my city someone tried and tried with a large old house to have it made into an assisted living, it had the space and was handicap accessible because it had been a school in the 70s. However the issue was parking requirements since it was in residential. 

I would say step 1 would be talking to your county/city. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here