S-Corp reimbursed home office expense

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  • appelman
    Senior Member
    • Jan 2010
    • 1195

    #1

    S-Corp reimbursed home office expense

    If an S-Corp reimburses its owner/officer for home office expenses under an accountable plan, should depreciation be included?
    Evan Appelman, EA
  • ChEAr$
    Senior Member
    • Dec 2005
    • 3872

    #2
    Originally posted by appelman
    If an S-Corp reimburses its owner/officer for home office expenses under an accountable plan, should depreciation be included?
    Nope. That's one think I checked preparatory to setting up my own home office for my S corp.
    Think I found it in Taxbook, but not sure.
    ChEAr$,
    Harlan Lunsford, EA n LA

    Comment

    • Gretel
      Senior Member
      • Jun 2005
      • 4008

      #3
      Agree

      O agree with Harlan.

      Comment

      • sandigi
        Senior Member
        • Feb 2007
        • 156

        #4
        Also a NO

        Same "person" is land owner and tenant. No depreciation.

        I seem to remember the regulations saying something like "I am you and you are me" . . . oh wait, I have that confused with a song.

        Comment

        • Nashville
          Senior Member
          • Nov 2007
          • 1129

          #5
          What If you Rent?

          What if the S corp rented the office space from the owner? That might work as long as S corp stuff was all that was happening in the space.

          The complexion is entirely different than Form 8829 - totally different requirements, allowed expenses, etc. The owner would instead report this on a Schedule E.

          And then, he would have to mark one of the new boxes at the top as being "Self-Rental." If you take a look at the fallout from "Self-Rental" he might want to just forget it.

          Comment

          • ChEAr$
            Senior Member
            • Dec 2005
            • 3872

            #6
            Originally posted by Nashville
            What if the S corp rented the office space from the owner? That might work as long as S corp stuff was all that was happening in the space.

            The complexion is entirely different than Form 8829 - totally different requirements, allowed expenses, etc. The owner would instead report this on a Schedule E.

            And then, he would have to mark one of the new boxes at the top as being "Self-Rental." If you take a look at the fallout from "Self-Rental" he might want to just forget it.
            Won't work, Ron. That is one possibility I considered before opting for the accountable plan reimbursement. Sorry I didn't retain notes on where I found it.
            But it involved any type corporation, not just S corp.
            ChEAr$,
            Harlan Lunsford, EA n LA

            Comment

            • Nashville
              Senior Member
              • Nov 2007
              • 1129

              #7
              Renting of Building

              ChEAr$, the dog does hunt. [I think] [maybe] [perhaps] Nothing like having confidence, right?

              We advise clients at every opportunity to keep the building in their own personal name instead of putting it in the ownership of the corporation. And then rent the building to the corporation.

              The only difference I see is that the "building" in this case is a portion of the owner's personal residence. That might be where the problems arise. In this regard, you may be correct...

              Either way, the new box indicating "self rental" has to be checked.

              Comment

              • appelman
                Senior Member
                • Jan 2010
                • 1195

                #8
                Thanks, everybody. And followup question.

                I concluded the rental would be doable, but not particularly desirable. What about reimbursement for auto expenses under an accountable plan. Would depreciation also be excluded in that case?
                Evan Appelman, EA

                Comment

                • ChEAr$
                  Senior Member
                  • Dec 2005
                  • 3872

                  #9
                  Originally posted by Nashville
                  ChEAr$, the dog does hunt. [I think] [maybe] [perhaps] Nothing like having confidence, right?

                  We advise clients at every opportunity to keep the building in their own personal name instead of putting it in the ownership of the corporation. And then rent the building to the corporation.

                  The only difference I see is that the "building" in this case is a portion of the owner's personal residence. That might be where the problems arise. In this regard, you may be correct...

                  Either way, the new box indicating "self rental" has to be checked.
                  My comments involved a corporation not being able to rent a portion of a home as an office. Certainly a corporation may rent a building from a shareholder/officer.
                  ChEAr$,
                  Harlan Lunsford, EA n LA

                  Comment

                  • jsamans
                    Member
                    • Jan 2014
                    • 98

                    #10
                    Originally posted by appelman
                    I concluded the rental would be doable, but not particularly desirable. What about reimbursement for auto expenses under an accountable plan. Would depreciation also be excluded in that case?
                    If reimbursement is made under the standard mileage rate, depreciation is part of the included per-mile rate (TaxBook 10-5). Similarly, actual car expenses include the cost of depreciation (TaxBook 10-6).

                    Anything that the shareholder could deduct on his or her own taxes can instead be reimbursed by the corporation, so yes, the accountable-plan reimbursement for auto expenses may include depreciation.
                    --
                    James C. Samans ("Jamie")

                    Comment

                    • Burke
                      Senior Member
                      • Jan 2008
                      • 7068

                      #11
                      Originally posted by ChEAr$
                      . Certainly a corporation may rent a building from a shareholder/officer.
                      And this does not fall under the "self-rental" rules even though it is a (sole-shareowner) S-Corp that rents a building from an LLC where the same shareowner is also the single member of the LLC?

                      Comment

                      • taxea
                        Senior Member
                        • Nov 2005
                        • 4292

                        #12


                        read requirements and additional tests for employees

                        "You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer." You are both employer and employee .... no can do
                        Believe nothing you have not personally researched and verified.

                        Comment

                        • JON
                          Senior Member
                          • Jul 2005
                          • 1265

                          #13
                          "Office in

                          the home" is not even close to the same as renting a building for the buisness from an owner!!! As long as the building is not a resident for the owner?? missing something here.

                          Comment

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