Living In Property Owned By LLC

[Michael Macaluso]

Hey everybody.

I bought a property in my LLC recently. Original plan was to fix up, rent, get some tax savings, and refi.

Turns out the house is in a great part of town local to us and we see ourselves living there.

The house has already been closed in the name of the LLC.

What is recommended for this situation and what’s the reasoning? Should I rent the property to myself or sell the property to myself, etc.

I would like to be able to use depreciation with the tax year coming to an end. However, I want to make sure I’m not doing anything illegal.

I appreciate any and all responses!

[Basit Siddiqi]

If the property is a personal property used for personal purposes, there is no depreciation since its not a business asset.

There may be a chance that you have a home office within the home that is eligible for some write-off but you have to be using the home office towards a business activity.