S-corp client rented prominent location property with large storage shed and significant advertising attribute for equipment maintenance and storage. Property also had old dwelling in which client allowed friends to live essentially rent free. Utilities costs were shared. Suggestions on how IRS will view and how to treat for taxes appreciated. Ron
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Additional detail
Electric service apparently in friend's name. Sometimes paid by friend, other times by S-corp -
Messy situation ripe for audit!
You could prorate using available documentation but warn your client that IRS may consider this to be personal use. They better have a very good explanation at audit!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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