Why Is It Bad To Rent For The Rest Of My Life?

AtomicPiss

https://www.youtube.com/watch?v=-CMlPY7eNJ4

TheRoarOfTheCrowd

I'm not sure about the "rest of your life" part but here is some thinking out of the box thoughts...

Truthfully its getting less bad all the time to rent... given the shrinking limit on deductibility of interest expense coupled with some states now disallowing property taxes as a deduction or actively limiting that as well, you may be better off to structure your bonified business as a c corp [not a sole proprietorship] and deduct a meaningful percentage of the rent as a business expense along with utilities... you are entitled as long as you use the facility to truly operate your business and net for the same valuation of the value of the property you are making out reasonably well after tax that way vis a via owning. I realize that is a specific set of circumstances that may not fit, but if it does it may well work out well under the right circumstances.

PurpleThrobber

DawgsCanDance said:

I'm not sure about the "rest of your life" part but here is some thinking out of the box thoughts...

Truthfully its getting less bad all the time to rent... given the shrinking limit on deductibility of interest expense coupled with some states now disallowing property taxes as a deduction or actively limiting that as well, you may be better off to structure your bonified business as a c corp [not a sole proprietorship] and deduct a meaningful percentage of the rent as a business expense along with utilities... you are entitled as long as you use the facility to truly operate your business and net for the same valuation of the value of the property you are making out reasonably well after tax that way vis a via owning. I realize that is a specific set of circumstances that may not fit, but if it does it may well work out well under the right circumstances.

It would be wrong to charge rent for an office in, say, a second home that is roughly equal to the annual cost to maintain/property taxes...wrong I say. God forbid the beer fridge contents get deducted to visiting clients who stop buy to talk bidness. Because everybody who stops by has their own bidness to discuss.

Or just smart?

The Throbber reports, you decide.

Ka ching.