Youmight be able to rent to yourself, but you better make it an arm length true rental. Collect the rent, declare the rent, etc. Another issue, however, is that if you go the LLC/arm length route, then you are generating taxable income for the LLC from yourself.
People also ask
Can I rent a property from myself?
Renting a property from yourself and to yourself is going to be a personal expense no matter which way you try and spin it. The ATO is going to see that as a personal expense and you檙e highly likely to get audited. I do suggest that you go and see a professional tax accountant about this, and they can discuss it with you in more detail.
Should I rent out my house or sell it?
The rent amount paid could be on the very low end of the marketplace thereby keeping any profit to a minimum. Sure you would potentially lose the tax benefit at the time of a sale and if your state offered any homestead protection you’d lose out on that. BUT, the potential benefits could far outweigh the downside.
Can you rent a property to yourself under a trust?
The trust owns it. The negative gearing benefits that come with owning a property in your own name don exist under a trust. Therefore the whole tax advantage of renting a property to yourself falls by the wayside. There are some rare circumstances where it is going to be beneficial for you to rent the property to yourself.
Can I rent my home to my business?
Renting your home to your business is the DREAM for many entrepreneurs. Your business benefits from the tax write-off, meaning you benefit financially from something you were doing anyway. Sounds too good to be true. But it isn, with one caveat. You must do it legally. If you檙e not, you could run into some serious tax trouble.