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Tax Planning/Rent vs Buying a Home


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.

Michael - I really don't have enough information from you to adequately answer this question.

What I can tell you from what you are asking, though, is that the two items have little to do with one another.  Expenses for owning a home that are deductible don't offset business income in the strictest sense.

You don't tell me what form of business you are involved in, how you will be compensated, what your total income will be, etc.  If I had that information, I could at least outline some scenarios for you and you could make a decision from there as to what makes the most senses.

But you can't really look at the two situations (being in business and owning a home) as linked together from a tax standpoint.

I hope this helps a little.  If you want to get me some more information, I'd be glad to assist further.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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