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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 02-01-2019, 12:13 PM
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Sunchimes Sunchimes is offline
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Default Tom, Can I Rent My Home to Myself?

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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Old 02-01-2019, 09:46 PM
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TomCopeland TomCopeland is online now
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Default rent to yourself?

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Originally Posted by Sunchimes View Post
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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Old 02-02-2019, 08:14 AM
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Sunchimes Sunchimes is offline
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Thank you! I appreciate your help!
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