I have a client who has an S-Corp of which he is the sole owner.
He claims that he rents his S-Corp a portion of his personal home.
I seem to remember some reason he caon't do this, but I can't remeber the citation or section of the code. After thinking about it forawhile, I did not really see any reason for not doing it, except that it will make his tax return have a schedule E, and make it a bit more complicated and he will lose a section 121 exclusion for htat portion of his home and after all is said and done, he gains nothing from the transaction and just complicates his tax return.
So, am I imagining that he can not rent his personal residence to his S-Corp, or is there some rule that prohibits this transaction?
Thanks,
Marc
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
.
__,_._,___
