If you start up a property managment company and buy a house, is it legal to rent that house to yourself as your primary home?
I was hoping to buy the house myself, but instead I think my dad is going to buy it for me, and rent it to me. He's going to rent it to me at a loss to his property managment company for like 5$ a month. Since the mortgage will obviousely be much more than the income from the property, he'll be able to right off the loss. So he'll be buying me a house with his income tax. I can't remember the exact percentage you can write off, but I think it was 90-95% of the loss. My dad will pay no taxes and I'll get a home which I'll later have signed over in my name once it's paid for. It appears that this is a very good tax loophole but I don't think you can do this to benefit yourself. He's going to consult his accountant to see if it can be done. My dad runs his own business, so he has a lot of money that he can write off.