Home Office deduction for 1 person Sub-S owner
Where do you or can you deduct Home Office expenses on Form 1120-S?
This is a single person owner of the Corp. Instructions do not seem to address this.
This is a single person owner of the Corp. Instructions do not seem to address this.
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Have an accountable plan so the Form 1120-S can deduct the expenses, but the reimbursements are NOT income to the shareholder. See TTB 19-15 and 8-11.Comment
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Have the Sub-S pay rent to the owner. Owner then claims income on Sch E, and deducts apportioned expenses.Comment
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"the Sub-S pay rent to the owner."
No, that's no good. See the following quote (from linked article) which succinctly states the problem. (I have researched this in the past and know it matches my understanding of the code section).
"IRC ?280A(c)(6) disallows home office deductions on rentals by employees to their employers, so you don’t even get those cool home office-y deductions like homeowner’s or renter’s insurance, HOA dues, repairs, utilities, etc."
(I was able to view the article despite the registration pop up by using my browser's reader-mode)."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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