My wife and I are closing on an owner occupied duplex later this month - tenant is already in unit B. The home is in great shape, but bathroom and kitchen are outdated. We want to maximize deductions and are looking for deduction loop holes. We're considering the below:
1) We'll live in unit A, and renovate unit B. Once tenant moves out, we'll move into unit B, and we'll renovate unit A for next tenant.
2) Purchase property under an LLC and LLC will create lease. We'll live in unit A and tenant lives in unit B. Unit A & B will pay LLC.
I'm not sure if any of these will work. Happy to hear your POV's and am all ears for any other out of the box ideas.
What is the purpose? What are you trying to accomplish?
@Mat O'Grady thanks for the reply! We're house hacking for 3 - 5 years and will eventually rent out both units for long term.
I mean, what tax advantages are you trying to seek?
@Mat O'Grady maximize deductions, write off improvements
Hello @Christian Valencia,
Correct me if I wrong, the purpose of the strategy is to right up one your biggest expense, rent. Correct?
If it is so, you are better to request professional advise. I am not sure is possible.