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Daycare and Taxes>Tom, Can I Rent My Home to Myself?
Sunchimes 12:13 PM 02-01-2019
My accountant had a question. I don't make enough to owe taxes, but I am still paying a fortune in quarterly taxes for SS and medicare. She is trying to find a way to lower that for us, and she thought maybe we could rent daycare space in our home to the daycare business. She said it was sort of a circular way to cut them, but she wasn't sure if it was allowed. She is looking at the IRS, but so far, she hasn't found anything. IF that isn't allowable, is there any other way to cut that? Husband and I are both over 65, drawing SS and Medicare, if that matters. Thanks.
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TomCopeland 09:46 PM 02-01-2019
Originally Posted by Sunchimes:
My accountant had a question. I don't make enough to owe taxes, but I am still paying a fortune in quarterly taxes for SS and medicare. She is trying to find a way to lower that for us, and she thought maybe we could rent daycare space in our home to the daycare business. She said it was sort of a circular way to cut them, but she wasn't sure if it was allowed. She is looking at the IRS, but so far, she hasn't found anything. IF that isn't allowable, is there any other way to cut that? Husband and I are both over 65, drawing SS and Medicare, if that matters. Thanks.
I assume you are a sole proprietor (self employed). If so, you can't rent to yourself and claim business expenses. Even if you incorporated and the corporation rented from you, you'd still have to report the amount as income, so don't try this.
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Sunchimes 08:14 AM 02-02-2019
Thank you! I appreciate your help!
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Tags:deduction - rent
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