Why Use Self-Rental?

Self-rental can be used for several strategic reasons:

Asset Protection

Separating business operations from real estate ownership can protect the real estate from business liabilities.

Income Shifting

Allows for more control over income allocation between entities.

Tax Planning

Potential to optimize tax outcomes by leveraging different tax treatments for rental income and business income. This strategy allows owners to shift income from the business to themselves in the form of rental income, which can sometimes be taxed at a lower rate compared to business income. Rental income also escapes self-employment tax.