In this video, we break down a powerful yet often misunderstood tax strategy: renting your own building to your business.
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When structured correctly, this setup allows you to legally use depreciation to offset your business income and potentially reduce your overall tax bill.
But there’s a catch—if you do it wrong, your losses can get trapped as passive and become unusable against your active income.
I’ll walk you through how to structure this properly for both tax efficiency and asset protection, including why your property should always be held in a separate LLC.
You’ll also learn how to determine fair market rent, avoid costly mistakes, and use cost segregation to maximize deductions.
Stick around until the end, where I explain key state-level issues you need to watch for when applying this strategy.
SHOW NOTES:
0:00 Intro
1:34 Proper Structure: Create a Holding LLC & Lease Back to the Business
3:46 Tax Treatment: Self-Rent Is Non-Passive Income; Losses Stay Passive
5:22 Why the Remaining Loss Is “Trapped” & When It Can Be Used
6:46 Requirements: Common Ownership & Making the Election
7:44 Your To-Do: Ensure Your CPA Documents This Correctly
7:52 State Alert: California (and Others) Don’t Conform to Federal Rule
9:11 State Workaround: Raise Rent via Quadruple-Net Lease (to ~$90k)
10:07 Effect: Lower State Taxable Income; Run the Numbers
11:02 Outro
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FREE TAX & ASSET PROTECTION WORKSHOP
Register for an upcoming workshop today to protect your business and personal assets from snoopy lawyers, creditors, or even greedy people out to make a quick buck who want to take advantage of YOU. 👉 Save Your Seat: https://aba.link/x5u
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FINANCIAL PLANNING & RESOURCES
Download your free copy of Un-Tax Yourself eBook and discover the secret to real estate wealth is in the tax deductions. https://aba.link/duy
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For financial strategies, podcasts, articles, and details on upcoming workshops, visit https://aba.link/clintaba
Here’s a little about me and my book Asset Protection for Real Estate Investors
https://aba.link/clintbio
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CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT CLINT COONS
Clint Coons, Esq. has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#propertyinvestment #taxstrategy #depreciation #clintcoons
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