Aliquippa, PA asked in Business Law and Tax Law for Ohio

Q: I bought a condo for my daughter to live in during college.(owned under my LLC) Would it benefit me to list her as

an employee of my LLC and pay her as a site manager since it is a 4 bedroom unit and i will have at least 2 others paying rent?

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1 Lawyer Answer
Eric Steven Day
Eric Steven Day
Answered
  • Tax Law Lawyer
  • Henderson, NV

A: It seems that if you paid her (a deduction) so that she could pay you rent (income), there would be some sort of wash there with the income offsetting the deductions. The way this might benefit you, is this could then be treated as a rental and you would be able to depreciate the property. However, for her to be considered an employee, there would have to be some business purpose that she is performing on behalf of the LLC.

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