Rental to Corp depreciable to stockholder personally?

[Super Mom]

Am I right, that when a more that 50% stockholder leases a building to a C Corp, that stockholder cannont depreciate that property on his personal Sced E to offset the income? What about insurance?

[Super Mom]

Help! I'm really confused on this one. Looking at TB makes me think it's depreciable to the stockholder but pub 946 makes me think not???????

[Maribeth]

Am I right, that when a more that 50% stockholder leases a building to a C Corp, that stockholder cannont depreciate that property on his personal Sced E to offset the income? What about insurance?

No you are not right. A fair-market-value lease arrangement between a shareholder and a C corporation is handled just like any other rental.

Maribeth

[Super Mom]

Thanks Maribeth, that makes more sense, but then when has the IRS been logical? Agreement anyone?

[Super Mom]

Insurance on the building is an expense to the shareholder as well right? Can the lease specify the corp having the building insurance? (really her and family)

[Super Mom]

I really need to know about the insurance. Is all family so can be either way, but want this right for IRS!

[Maribeth]

I really need to know about the insurance. Is all family so can be either way, but want this right for IRS!

The tenant needs to have insurance for its possessions and to protect itself incase of fire, flood, theft, etc.

The landlord needs to have insurance to cover the loss of the property.

Maribeth