Renting from your Own LLC Tax Consequences

[Cheryl Platt]

I am getting ready to tear down the house I am living in and build a new house in its place. While we are building, I would like to rent a home that we purchased through our rental property LLC. I know that I can rent from the LLC as long as I have a lease agreement for the fair market rent amount. I saw somewhere that I might get double taxed on the rent paid and the rental income? That I might not be able to deduct the mortgage interest, etc.? I guess I don't understand why that might be the case. If I'm paying the business fair rent for the property, have a lease agreement between the LLC and myself for fair market rent, wouldn't it be treated just like any other tenant's income into the business?

Secondly, for the time I am living there, if I don't pay the business rent what expenses can be deducted on the business taxes?

Thanks in advanced for helping me sort this all out.