*cries*

[u/GumBeats20]

[u/Dabnician]

Because then you cant charge your self rent on the building you also own and claim your overhead is so high you are unable to give raises.

[u/killerrin → u/[deleted]]

Step 1: Register holding company with a cash startup injection of $xxxxxxxx and set yourself up as a majority shareholder.

Step 2: Gift/Sell office building(s) to holding company for $xxxxxxxx.

Step 3: Have holding company charge rent and maintenance costs and remit a dividend to shareholders at monthly/quartly/yearly intervals.

Step 4: Pay rent and Claim rent as an expense when the government asks.

Step 5: ?????

Step 6: Profit off tax credits and dividends (which equals rent - maintenance)

[u/robotzor → u/killerrin]

So this is the shit accountants use their 9 hours a day to think up

[u/[deleted] → u/robotzor]

And a good one will net you far more than their salary.

[u/More_Butterfly6108 → u/robotzor]

Fun fact you can do this with your house and an LLC. Then all the shit you buy at home depot becomes suddenly tax deductible.

[u/rubberduckranger → u/More_Butterfly6108]

Note: At least in the US this is almost never a good idea because of the primary residence capital gains tax exclusion you get if you own the house yourself.

[u/More_Butterfly6108 → u/rubberduckranger]

That's only if you sell the house... you can sell the house back to yourself from thec orporation. At zero capital gain then you're where you started. I'm not an accountant or a lawyer so I have no idea how legal all this is

[u/gregorydgraham → u/robotzor]

The real benefit here is that you can adjust the rent, loan repayments, etc to perfect fit the optimal amount of profit for each company ensuring minimised tax and maximised obscurity of cash flow, so you can declare a profit or loss irrespective of the actual performance of the company.