Best answer
Therental income is still taxable,however if you don’t own the property then there would be no asset listed for depreciation on the rental. If you incurred some costs to earn the rental income,those costs could be considered ordinary and necessary business costs and may be deductible.
People also ask
Can I rent my own home to myself?
The main reason why renting your own home to yourself doesn work is because it creates phantom income and phantom losses. Let say you want to put your home in an LLC and rent the home to yourself for $1,000 per month. That $1,000 per month is not a deduction on your personal return and is instead rental income on your LLC.
Can I rent out my house with a mortgage?
Before you consider renting out your property, it is in your best interest to defer back to your mortgage contract in order to ensure that there are no prohibitions against such actions established by your lender. There is a possibility that your mortgage lender could prohibit you from renting out your property.
Can you rent out a house as an investment property?
One of the things to know before renting out a house as an investment property is that turning a house into an income property comes with costs that you, as a real estate investor, have to keep in mind.
Is it bad to rent your house to yourself?
Renting to Yourself Could Create a Mess In The Future Even if you were to run your self rental at a break-even you would still run into major tax problems in the future. If you have a self rental then chances are you檙e taking a depreciation deduction on your home to offset the rental income.