Mark Kohler explains how business owners can buy the property they lease, then rent it back to themselves. You deduct the rent as a business expense, plus use cost segregation and bonus depreciation to slash your taxable income and potentially get a refund.
Chapters
If you're a business owner and paying rent to someone else, let's consider when that lease comes due, and it could be in the next 6 months. You may even want to try and get out of that lease sooner and buy your own building, your own shop, your own warehouse, your own storage unit, your own commercial condo. I mean, you could be moving into a building. You don't have to own the whole building. There are commercial condominium spaces that you could buy for your business, pay rent to yourself, and you don't even have to be a real estate professional to again cost seg and take bonus depreciation on that building. You could wipe out a good chunk of your business income this year, get a refund by buying your own building and renting it to yourself. It's an incredible strategy. It's called the self-rental-4 strategy.