OIH deductions and PSC

[brightonea]

TP is a sole member of a LLC being taxed as a 'S' Corp.

What is the correct way for the TP to be paid rent or reimbursed for use of home office?

If TP's entire income is derived from consulting services. Does having a 'S' Corp entity legally avoid the dreaded PSC flat rate tax of 35%?

[rosieea]

TP is a sole member of a LLC being taxed as a 'S' Corp.

What is the correct way for the TP to be paid rent or reimbursed for use of home office?

If TP's entire income is derived from consulting services. Does having a 'S' Corp entity legally avoid the dreaded PSC flat rate tax of 35%?

1. I recommend adopting an accountable plan for home office reimbursements. No income to the shareholder, and the Corp deducts the expenses.

2. There are no PSC concerns with an S Corp.