USA Deductibility of rent for C-Corp housed in condo owned by an owner

Joined
Feb 25, 2018
Messages
1
Reaction score
0
Country
United States
A small C Corporation with two shareholders have their office in an office condo that is owned by one of the shareholders and his wife. Small businesses cannot deduct rent when an owner of the business owns the real estate. Does this apply when the business is a C-Corp? If so, can the owner, instead of charging rent, pass through the HOA fees as "Office Services" since the occupants benefit from those services? In this particular case, the owner's business cannot afford to pay the rent at this time, so the owner does not have any income against which to apply the HOA fees.
 

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
499
Reaction score
42
Country
United States
Since when can't a small biz corporation deduct rental expense paid to one of the owners for use of their real estate? Not only can they but to keep things arms length they should.

The rental income on the personal return may need to be treated under the self rental rules.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,782
Messages
27,851
Members
21,793
Latest member
nextgenaccountant

Latest Threads

Top