Hello,
Let's assume that I am a high paid consultant working as a sole proprietorship. With Covid remote work and my kids being at home it's been quite crowded. Would it be possible to purchase another house to use solely for business. Obtain a mortgage etc. But then pay off that mortgage using my business income so that the mortgage would come out of my profits?
For simplicity's sake suppose I didn't even bother to take depreciation on this property. In a year I then convert this home to personal use. What exactly would I owe the IRS at that point? I didn't take depreciation on this property. Eventually when I sold it I would owe capital gains on any appreciation. But the initial payment was done with pre-tax income from my business.
This seems like it shouldn't be possible?
