How the Self-Rental Rule Blocks Home Office Deductions

Episode 49 dives into the IRS self-rental rule, a trap that catches real estate professionals who rent their home office to their own business. Lucas and Luna break down Section 469, the material participation test, and a real-world example from a 2026 tax court case where a consultant lost $23,000 in deductions. Listeners learn how passive activity loss rules classify rental income and why owning the office you work in can actually hurt your tax bill. Specific strategies include converting to a cost-sharing arrangement or electing out of the recharacterization rule. No fluff, just the one angle that saves you from an audit. #SelfRentalRule #HomeOfficeDeduction #Section469 #PassiveActivityLoss #TaxCourt2026 #RealEstateProfessional #MaterialParticipation #IRS #AuditRisk #RentalIncome #TaxStrategy #Finance #FexingoBusiness #BusinessPodcast #TaxPlanning #SmallBusiness #ConsultantTaxes #HybridWorker Keep every episode free: buymeacoffee.com/fexingo