Article Date:
May 2017


Word Count:
1064

 

 

Six Tax-Deduction Concerns about Renting My Home to My S Corporation


Does It Work?

 

I am an enrolled agent and a subscriber to your publication, along with several of my clients.

 

I question your article Tax-Free Income from Rental of Home to C or S Corporation that appeared in last month’s issue. I don’t think renting the home to the S corporation for 14 days or less is a viable tax-deduction strategy for the following reasons:

 

1.

IRS Technical Assistance Memorandum 200121070 grants no rent deductions to the employee who rents to his or her employer. This negates your strategy.

2.

This is a related-party transaction and therefore disallowed.

3.

This cannot be used with a vacation home.

4.

This is super aggressive and cannot be put on a tax return.

5.

The $1,500 rent for a day cannot represent fair-market-value rent.

6.

The rules of attribution will negate this transaction. ... Log in to view full article.

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