Real Estate: Rental Income and Your Own Business

By Peter Wolfing www.blogtoolbox.com rnRental Income and Your Own Business One widely used method for building personal wealth, is to let your business compensate you for your financial risk as well as your services by retaining any real estate used in your business in your own name. Then, you lease the property to your company. This gives you income that can be increased in later years as the business prospers. At the same time, it gives your company a deduction. More importantly, down the road, when the property has appreciated significantly, that appreciation will not be double-taxed as it would if your corporation owned it. The IRS expressly forbids this method, however, if you are using a home office. If you want to lease part of your own home to yourself, don’t try to deduct the rent on your tax return. I hope you enjoyed this blog article. To your financial success, Peter Wolfing