If I purchase the building that my office is located in...

Forum|Forum|6 years ago
January 18, 2020
10 replies
33 views

Can I raise my own rent to reduce my SE taxes for my business? Would I need to be a different type of entity, or can I own the building personally and keep my tax office a sole prop?

Serious question, the building is for sale, I'm the longest standing tenant and they like the idea of selling to me, we're meeting next week to see if the numbers make sense...if the building can pay for itself with the mortgage Id need to finance, it might be a pretty good investment.

ProSeries Professional

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Best answer by rbynaker

While you can't deduct rent you pay to yourself, you can deduct all of the building expenses on your Schedule C (interest, taxes, insurance, utilities, etc.) That will reduce your SE tax.

If you have other tenants in the building you'd prorate the expenses between C and E.

rbynakerAnswer

Level 13

While you can't deduct rent you pay to yourself, you can deduct all of the building expenses on your Schedule C (interest, taxes, insurance, utilities, etc.) That will reduce your SE tax.

If you have other tenants in the building you'd prorate the expenses between C and E.

Just-Lisa-Now-

Author

Intuit Community Champion

I guess I left out some details. Its an office building with at least 15 other leased offices in it. So it would be a commercial rental property that I would be purchasing, my office is just one of the offices in the building. Does that change your answer?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

garman22

Intuit Community Champion

I dont think it changes the answer quite frankly.

Here is what I found.

https://intltax.typepad.com/intltax_blog/2019/01/rental-of-real-estate-to-yourself.html

There are others but this made sense to me.

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