The Self-Rental Strategy_ Pay Yourself Rent and Get a Massive Tax Write-Off

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Paying rent for a storefront, office, warehouse, or storage unit? Instead of sending that money to a landlord, you could own the building and rent it to your own business. That can mean a lower monthly payment, equity building up every month, and a major tax write-off.

In this video, CPA and attorney Mark J. Kohler, who owns three self-rentals himself, goes to the whiteboard to show how the self-rental strategy works using an S-Corp and a separate LLC that holds the real estate. He covers the 6 big benefits:

Save money, with a mortgage payment that can be lower than your rent
Save taxes with depreciation, interest, and other write-offs
Build equity and benefit from appreciation
Accelerate your write-off with cost segregation and 100% bonus depreciation
Bring in family members and leave a real estate legacy
Buy more space than you need and rent the extra to a third party

He also explains the self-rental trap that catches many business owners and accountants, and the easy fix: a 1.469-4 election with unity of ownership and fair market rent. With that in place, you don’t need real estate professional status to use the losses.

Already locked into a long lease? Mark explains why that may not stop you, and how SBA 504 loans, seller financing, or a 1031 exchange can help you buy your own space.

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Resources:
Interview a Main Street Tax Pro that Speaks like Mark: https://taxadvisornetwork.markjkohler...
Meet with a Real Lawyer on Zoom: https://kkoslawyers.com/contact-us/
Self Direct Your IRA or 401k- Buy a Business or Real Estate with Your Retirement Account (Directed IRA): https://directedira.com/appointment/
Keep Your LLC or Corp in good standing and Hide Your Address (Main Street Business Services): https://mainstreetbusiness.com/
Become a Certified Tax Advisor in Mark’s Program: https://mainstreetpros.com/

Free Resources:
Ebook & Newsletter: https://markjkohler.com/youtube/
Blog: https://markjkohler.com/blog/
Podcast: https://mainstreetbusinesspodcast.com/