All Forum Posts by: Shaun Rowan

My wife and I currently own our own house in our own names. I've been looking in to ideas of how to write off rental income. The way we have the LLC set up, it roles its income directly in to our joint income, Texas if you were wondering.

My question. Can I quick deed the property in to the LLC's name, then rent the property from the LLC for, say, $100 a month? Far far less than market rent. Personally, I wouldn't be able to deduct property tax or mortgage interest from my personal taxes, however the LLC would be able to deduct those from its income, prior to rolling net income up to us. While the LLC would make $1200 more over the year that it is right now, once the property is a rental, it would be eligible for normal depreciation, which is much more that that $1200. I'm not even going to get in to the weeds about selling it for current market rate, how much more that would be for depreciation vs. the increase cost in the mortgage interest (I think it still works out, but not getting in to it).

I know that I've read rules about a business (LLC) not being allowed to rent office space to itself for below market rent, but are there any actual IRS rules about that for residential properties?

Trying to think outside the box and see what happens