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Updated over 5 years ago on . Most recent reply presented by

User Stats

173
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86
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Patrick J.
  • Rental Property Investor
  • Tucson, AZ
86
Votes |
173
Posts

Can I rent to my own business to avoid SE Tax?

Patrick J.
  • Rental Property Investor
  • Tucson, AZ
Posted

I am going to rent a private office and my plan is to make an LLC that collects rent from my personal business.

By doing this, my business income gets shifted into rental income thus avoiding a lot of the 15.3% Self Employment tax. This seems a lot simpler than going the S-Corp route although I could make an S-Corp + pay rent to myself saving me even more taxes.

From what I read online, it seems legal. The beauty of this is that my income would not affect lending guidelines for mortgages since it just gets shifted into rental income.

Any thoughts?

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