Article Date:
March 2022

Word Count:



Avoid the Self-Rental Trap

Let’s say you own the building.


Now, let’s say that you rent this building to your business.


With no tax planning, you have a self-rental, and that



makes rental income from this building nonpassive, meaning that it cannot offset any passive losses1 (very bad); and


makes rental losses from this building passive losses, meaning that you likely cannot deduct the losses this year2 (also very bad).


So, there you have it: with no tax planning, you get the worst of both worlds.




But wait—there’s a solution (often overlooked).


Under a special grouping rule, you ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee