self rental Archives - Blau Company Accounting & Tax Preparation

What happens when I rent to a relative?

If your tenant is related to you, however, special rules and limitations may apply. (For these purposes “related” means spouse, child or grandchild, parent or grandparent, and siblings.) Here's the tax picture: If you rent a home to a relative who (1) uses it as his or her principal residence (that is, not just as a second or vacation home) for the year, and (2) it's rented at a fair rental (not at a discount), then no limitations apply. You can deduct all the normal rental expenses, even if they result in a rental loss for the year. (If you [...]

Aaron Blau, EA, CPA2016-10-27T16:54:56-07:00March 20th, 2015|Personal Tax|Comments Off

New Law Alert – Commercial Property Leases & Self-Rental

House Bill 2324 sponsored by Gilbert Representative Eddie Farnsworth will be enacted in September of 2013, with many municipalities enacting it as of July 1, 2013. The bill, which passed the Arizona State House AND Senate UNANIMOUSLY excepts certain commercial leases from Transaction Privilege Tax. Additionally, the bill prohibits municipalities from taxing the transactions as well. The exemption applies to certain affiliated companies, businesses, or persons. Background: It is very common for a business owner that owns both the business and the land & building the business uses to utilize separate business entities to separate liabilities. For example, a manufacturing company [...]

Aaron Blau, EA, CPA2019-09-09T13:34:14-07:00August 5th, 2013|Business Tax|Comments Off