2007-02-06 13:13:31 · 2 answers · asked by new biz 1 in Business & Finance ➔ Renting & Real Estate
Yes you can lease real estate that you own to your corporation but technically there has to be a business reason for tax purposes.
The problem with such a lease is that how would it ever be reported to a credit reporting agency?
2007-02-06 13:19:54 · answer #1 · answered by Nusha 5 · 0⤊ 0⤋
Actually, this is an excellent way to shelter income.
If your corporation rents from you, the income from the rent is taxed as unearned income, which can be less than your normal tax bracket. Also, depending on your corporation, you will be free from double taxation and your FICA payments.
Just remember, the rent must be at market rates. To be truthful, you can exceed market rates by 10% and not draw any attention from the IRS.
Good Luck
2007-02-06 13:52:03 · answer #2 · answered by A_Kansan 4 · 0⤊ 0⤋