Renting half of my condo to my LLC and HOA Fees

[HeritageIce]

Hello,

I'm trying to figure something out on my taxes... I currently run a business out of half of my condo (Legitimately it takes up half of the home with equipment, supplies, etc...) I was planning on paying myself rent from my LLC, and then offsetting that income from the rent via my HOA. My HOA is well over the cost of rent. Furthermore I have a special assessment for the overall building that is bleeding me out... 

Is this something I can do?

[SharonD007]

Please clarify if you have a single member LLC or a multi member LLC.

[HeritageIce]

It's a single member LLC!

[SharonD007]

No, you cannot pay rent to yourself from your single person LLC business, but you may be able to deduct a home office deduction if you meet the requirements:

• Your home must be your principal place of business
• You must use a portion of your home for conducting business on a regular basis. For example, the area that you use for your business must be used both regularly and exclusively for your business.

Please refer to the IRS article How small business owners can deduct their home office from their taxes for more information.

Single member LLCs are generally treated as a sole proprietor and business taxes are reported on your personal income tax return on a Schedule C.  Please review the TurboTax articles The Home Office Deduction and What is IRS Form 8829: Expenses for Business Use of Your Home for home office expenses that you can deduct for your LLC on your Schedule C.