I am an officer of a small C corporation. I am not a shareholder, just an officer. I own a house that I was thinking of leasing to the corporation which would then use the house as rental property. Would this be a violation of any "arms-length" or other rules. Thanks for any input.
USA Leasing Property To Corporation For Rental Use
- Thread starter penpoint
- Start date
This happens quite regularly in small business. In fact rarely does a corporation own the real estate it uses. There are tax traps and exposure to liabilities when a corporation owns real estate.
As long as things are truly at arms length it should not be an issue especially if the transaction is immaterial to both the corporation and you.
If you do not undergo financial statement audits or reviews, the issue is somewhat mute.
I do question why you are going to lease it to the corporation only to have them lease it to others.
As long as things are truly at arms length it should not be an issue especially if the transaction is immaterial to both the corporation and you.
If you do not undergo financial statement audits or reviews, the issue is somewhat mute.
I do question why you are going to lease it to the corporation only to have them lease it to others.