Search Help


Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
April 2017


Word Count:
1303

 

 

Tax-Free Income from Rental of Home to C or S Corporation


Question

 

My CPA tells me that IRC Section 280A allows me to rent my entire home to my S corporation for 14 days or less during the year and get big tax deductions.

 

In the example, he explained that I could charge my S corporation $1,500 for each day of use. This rate equals what I would have to pay to rent a home that’s pretty much like mine. Say I rent the home for 14 days. That gives the S corporation a $21,000 tax deduction for the year.

 

He next explained that on the personal side of the ledger I don’t get any tax deductions for the rental of the house, and I also don’t include the rental income on my personal tax return.

 

Because I operate as an S corporation, this strategy creates a net $21,000 tax deduction when passed through to me.

 

This seems almost too good to be true.

 

What is your opinion? ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee



 

SS