How a Self-Rental Strategy Shrinks Your Tax Bill

Lucas and Luna unpack the self-rental strategy, a little-known tax maneuver where a business owner rents property from themselves to shift income, claim deductions, and reduce self-employment taxes. They walk through a concrete example: a real estate agent in Austin who owns her office condo personally and leases it to her LLC, saving roughly $8,000 in 2025. The hosts explain the IRS 'recharacterization' rules, the role of a written lease, and why this works best for profitable businesses. They also flag the traps: audits spike when the rent is too aggressive or the LLC loses money. No prior episode has covered this specific strategy—it's a fresh angle on the intersection of real estate and business tax planning. By the end, listeners understand one concrete, legally sound tactic to discuss with their CPA before year-end. #SelfRentalStrategy #TaxPlanning #BusinessTax #RealEstateTax #SelfEmploymentTax #Deductions #IRS #LLC #Lease #Austin #CPA #YearEndPlanning #Finance #TaxStrategy #AuditAwareness #FexingoBusiness #BusinessPodcast #TaxTips Keep every episode free: buymeacoffee.com/fexingo