Can u buy house with an LLC and live "rent free"?

Pay off the property and it is yours based on the assessed property taxes per year in your state. Our place only needed about 160 a year to the revenuer and it's not a burden. If we did not pay taxes each year the Revenuer will own the place and auction it off to keep not only the unpaid taxes but everything other dollars too. Tens of thousands or hundreds of thousands of it. And you are out.

Law is a way of keeping people from doing workarounds for it's own sake of revenue to run the Government. It's a pleasure as a Citizen to pay the taxes we cannot avoid. //sarcastic.

 

It sounds like a good idea but im sure somebodies tried it. I know real eatate guys buy houses with LLC but they buy it with the mindset of,renting, it out. Ive learned anytime u try to cut off uncle sam, somehow it always comes back to u.

 

No. If your register your llc at your primary residence you still are only allowed your deduction for home office. Because this is your primary residence. Btw a home office is a big red flag for IRS. Keep it legit and dont think about taking more than you should. They are watching. Dont landscape your house and write it off because your office is their. Fyi.

Now second business address for business only could be 100 write off. But best to consult your tax accountant or attorney first per your state or city regs.

 

It will not be pretaxed, you will pay taxes on it because how it will be depreciated and how it is considered commercial property by the IRS..

You also have to prove no one is living there, or you will have a tax levied on you for your income gains.

 

You can buy any property with an LLC, but to rent it to yourself is tricky. You can technically do it and claim the income, but it becomes phantom income. It only looks like income on paper, but in reality it is not extra money in your pocket. It becomes a big deal if you are ever hit with an IRS audit.

The only real way you can do this is if you have an actual business that uses a large portion of your home/land. Then you use the actual business income to pay yourself rent. you would have to seperate all expenses into business and personal. It does lower your taxes, but again you have to have a real business that makes income.

I have a client that owns 2 dump trucks. We found a property that had some extra acreage, and a good sized garage. He parks his trucks next to the house, and uses the garage to keep extra tires, tools, and other equipment to clean and maintain the truck. He charges his business $900 monthly rent to park the trucks and use the garage. the acreage for the trucks is about 1/2 of the entire property so 1/2 of all depreciation, interest, repairs, utilities and other expenses is deducted on a Schedule E. nice big tax break.

 

Keep in mind a personal residence is exempt from capital gains tax when you sell it. Not so with commercial property.

 

Bank is not likely to loan to an LLC. No mortgage, no payment, no deduction pre-tax, post tax or in between tax.

 

The IRS will declare the price of the house as income and tax you on it.