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Buying or Selling a Home/house in commercial zone with non-homestead taxes
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Question
I am looking to buy a house that will be used as a residence, but is located in a commercial zone. However, I am also the owner of an S-corp, which I opperate out of my home. The house is in Holt MI and I do not know the regulations about running a business out of a house that is also my residence, but located in a commercial zone. It's all very new to me!
Also, how terrible are non-homestead taxes?
Mayra Escutia
One has nothing to do with the other, Mayra. The IRS would instruct you to use whatever percentage of your residence for business and deduct that from what ever gain you make in the value of the house. Then the IRS would want you to account for your business overhead in the business portion. However, I strongly suggest you consult with a CPA or tax consultant to make sure you treat the property properly. It wouldn't hurt to consult with the tax expert in advance of actually buying that property to make sure you purchase it properly for the plans you have for it. I do wish you well.
Dick Dennis
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Dick Dennis
Expertise
With more than 41 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter, The Landed Gentry. It can also be sent to you via PDF.
Experience
Solving real estate problems for 37 years.
Organizations
National Association of Realtors
Publications
Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers
Education/Credentials
e-Pro Realtor, Certified Distressed Property Expert, Who's Who in Creative Real Estate
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