I would invoice him which would be turned into his company for reimbursement. His company will pay it and you would claim it on your condo rental business as rental income. His company deducts it on their taxes as travel expenses. No problems.

I rent my building from myself. Two separate business. In the first business it is a rent expense. In the second business it is rent income. Just make it market value and have proof of how you came up with the number. Naturally keep everything separate - checking accounts, tax id #s, etc. ultimately it all flows to my 1040.

Is your condo rental a business or is he the only "renter" in your condo?

If he is the only renter, it isn't really a rental business, and I'd have his business rent the premises. Draw up a lease, he signs it as a representative of his business. He pays monthly rent. His business deducts it as rent expense and you (as a couple) declare the income as rental income on your 1040. He files a Schedule C in association with his business I am assuming.

If you have no idea what I am talking about you need an accountant to guide so you don't mess it up.

LT Gains? What do you mean? Is the condo in your private names or is it a business?

51% of the time? Are you talking about residency? Either this is your primary house or it isn't. If it is your primary house then he can take an office deduction. If this is a 2nd home then you can rent it through his business if he has a legitimate business. IF this is part of your rental holdings then you need to rent it like a rental.

I'm not sure what you're hoping to achieve doing this. Maybe someone can explain.

The way I figure it is a business can always deduct rent regardless of to whom it is paid. That doesn't change if you rent from yourself or Bob the Land lord.

If you rent from yourself, you have to claim the income, which is offset by the rent expense claimed by your business. Also, you are not able to rent the same space to another tenant at market rate, so even if you give yourself a discount, you are losing out on the money you would have made renting at market rate to someone else.

I use 7 garages in different apartment buildings of mine for storage. I rent these garages from my buildings paying rent each month from my construction company.

My buildings record the rents as income while my construction company writes off the garage rents.

A friend of mine has a family business, started by his father. It's a plumbing supply business, run from a large warehouse. The plumbing supply business pays rent to the warehouse owners... which happens to be the same family... and has for 50+ years.

Even when the plumbing supply biz is struggling, it's the warehouse rent from that biz that keeps food on their table.

So when done correctly, it's not a problem, though I don't have firsthand experience with it myself.

You are allowed up to 14 days a year of personal use in your rentals.

You are required to have business meetings if you operate a LLC

Why not just deduct the expenses of having a place to stay?

Lisa,

Who owns the rental? In both your names?

The IRS does not have a sense of humor and frowns on renting to relatives.

Me? Don't poke the bear.

Or maybe re-title the condo to the business so it can pay taxes, ins, utils, repairs, REMODELING...

BRAD

Of course everyone reports 100% of all there income.

The yard sale that I drove by today also was charging sales tax too so the governor could also get paid. I am sure that income will also be claimed.

If he is going to be living in it for at least two years and he also owns it for five years then you would not have to pay profitable gains taxes on it if you never rented it, I think.

Check the IRS codes and ask an accountant.