STR Accounting IRS Structure Question

[Tania Reuben]

We're planning to STR a cottage on our personal property.

My question is from a structure standpoint, can we rent the cottage through one of our corporations, or do we rent it personally.  

I know one other family that STR's on their personal property - and they have their Corp run the rentals.

Our accountant is saying that we don't run the STR through our corporation as the property is owned personally. Yet the only people I know doing this are running it though their corporations.

This is literally the last step before I can list the rental, as the permit for our county requires a Name or  Corporate Name on the form.

[Natalie Kolodij]

You do not want a rental in a corp, ever for tax purposes. 

If you "operate" it through your corp you're essentially operating a property management company and it's going to make that income subject to self employment taxes. You're creating HIGHER taxes. 

I'm not an attorney- but most lawsuites most commonly relate to the physical property....someone falls, gets hurt, tree falls, ect. 

The Legal owner of the property will be held liable, not whoever is on the contract.