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Subject Author Date
S-Corp with Home as Principal Place of Business Alexander Villatora 04-23-2006
Posted by Alexander Villatora on April 23, 2006, 3:13 am
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 I've just converted from a Sole Proprietorship to an S-Corp.
When I was a sole proprietor I took the home office
deduction for the one room in my house dedicated to business
use. Now that I have an S-corp, what is the best way to
recoup my home office expenses? Should I reimburse myself
using an accountable plan or have the corporation pay me for
the use of the room (rent). BTW, my home is the official
address of the corporation and the only place where I work
out of.

Thanks in advance for any help.

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<< and does NOT constitute legal OR professional advice. >>
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Posted by Bill Brown on April 24, 2006, 10:55 am
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 Alexander Villatora wrote:

> I've just converted from a Sole Proprietorship to an S-Corp.
> When I was a sole proprietor I took the home office
> deduction for the one room in my house dedicated to business
> use. Now that I have an S-corp, what is the best way to
> recoup my home office expenses? Should I reimburse myself
> using an accountable plan or have the corporation pay me for
> the use of the room (rent). BTW, my home is the official
> address of the corporation and the only place where I work
> out of.

Have the corporation reimburse you in an accountable plan.

Having the corp pay rent won't work. It isn't deductible by
the corp. Instead, it is treated as a basis reducing
distribution to the owner-employee.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Benjamin Yazersky CPA on April 24, 2006, 10:55 am
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> I've just converted from a Sole Proprietorship to an S-Corp.
> When I was a sole proprietor I took the home office
> deduction for the one room in my house dedicated to business
> use. Now that I have an S-corp, what is the best way to
> recoup my home office expenses? Should I reimburse myself
> using an accountable plan or have the corporation pay me for
> the use of the room (rent). BTW, my home is the official
> address of the corporation and the only place where I work
> out of.
>
> Thanks in advance for any help.

accountable reimbursement plan

--
<<< Benjamin Yazersky CPA [NJ & NY] >>>
---> real address on hobokenx or hobokeni <---

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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