Article Date:
May 2017

Word Count:



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:



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


This is a related-party transaction and therefore disallowed.


This cannot be used with a vacation home.


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


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


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

Log in to view full article

Already a subscriber?

Email Address


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