Easy and free tax deduction

If you have an LLC, then your LLC should rent your home for all-day business meetings or “planning retreats,” once a month.  Or, 14 days in a row, or 7 days in November and 7 in December. Timing and duration do not matter.

What DOES matter is: Do not rent your home more than 14 days per year. Under IRS regulations, if you keep it to 14 days or fewer, you do not have to report the income. On the other hand, the LLC has a deductible expense. What a great way to reduce your taxable income!  I learned this trick at a webinar. Education does pay off!!  Ask your accountant about this, to be safe, but I haven’t found any potholes in this deduction. Potholes are the opposite of loopholes. Loopholes are little technicalities that are good. Potholes are little technicalities that are bad.

FYI, Hotel meeting rooms generally rent for $150 to $500 per day, depending on amenities, location, and catering.  Fourteen days at $150 per day adds up to a $2,100 tax deduction.