Greetings.
My parents own a commercial investment property (in their LLC business name) free and clear and have discussed leasing it to my LLC business. I would then sublease it and generate business income. They are looking to simplify their lives and not deal with any day to day issues related to being a landlord any longer and would just like to receive some monthly revenue. Can they lease it to me below fair market value (maybe as low as $1 per year so they would not have to remit sales tax...we live in Florida) and report their revenue as income? What are the IRS rules for this?
We've discussed selling it to me but since I will inherit it as the stepped up value, this does not seem to be a smart option.
