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Tax Planning/Buying vs Renting a Home

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Question
My business partner and I will be starting a business together here in California in the next 6-12 months. I am currently renting a home and am wondering if now is the right time to buy a home in order to maximize tax deductions from my new business? I realize that owning a home offers certain tax advantages over renting, but what I am really looking to find out is if it will be more advantageous tax-wise to own a home versus renting when I will own 25% of my new business. If you need more specifics from me, please let me know. I appreciate your feedback on this. Thank-you.

Answer
Those two issues are not related. Your owning a home would have no affect on the business. And you owning 25% of a business would not directly affect you owning a home. Your home mortgage interest deduction is only applicable to your personal income. Only if you have taxable personal income would the mortgage interest deduction apply.

However. . .

If you intend to borrow money to buy a house, changing your status from "long term w-2 employee" to "new business owner" will adversely affect your ability to qualify for a mortgage.

"Deduction Hunting" does NOT contribute to business success. Your business does not need more deductions it needs more revenue. Focus on revenue building, not spending. ESPECIALLY when you are just getting started.

Until you make a profit, taxes do not apply.

Tax Planning

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Richard Fritzler

Expertise

I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.

Experience

Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com


Organizations
National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute

Publications
Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability for over 17 years. Providing retirement option that are not just tax deferred, and not limited to a "token" tax free contribution. Retirement plans that allow for total and complete access before you are 59.5 with no penalties

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