Tax Strategy of Primary residence as AirBnB?

Tax Strategy of Primary residence as AirBnB?

Investor · Scottsdale, AZ · Member since 2011 · 509 posts · 134 votes

Im going to buy a primary residence, but I want to AirBnB it during the high season in Phoenix. 

What are your thoughts of buying the home with a conventional loan under my name, then selling it via sub2 to my holding company, so I can keep the existing 4% loan in place, but be able to write off expenses against the income?

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  • Investor · Scottsdale, AZ · Member since 2011 · 509 posts · 134 votes
    10y

    Dont bring up the due on sale clause. Lets consider I have the cash to pay off the loan if its called due

  • Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Is there a reason you think you need to title it to an entity to write off expenses? You can still do that with it in your name. If you are looking for liability coverage, I would add an umbrella policy. Putting into an entity doesn't change your expense write offs. Check with a CPA for confirmation.

  • CPA/Investor · Minneapolis, MN · Member since 2016 · 19 posts · 12 votes
    10y

    I would agree with Bryan.  Take out an insurance policy if you are worried about liability.  In essence the expenses are deducted the same if you have it personally or in a holding company.  You are going to face challenges due to the high personal use nature of the investment when it comes to writing off expenses.

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