Rental Of Office From Owner Of Corp
We use a room in our house that we own as an office. The corporation pays us 1000 each month as rent. Do we have to claim the rental income and file a schedule E on our tax return? Or do we just claim the rent expense on our corporate return and call it a day.
Thank you.
You have to report it as income. AND it is a very grey area with an S Corp and office in your own home.
[addsig]
Also.... In most states you also are required to pay sales tax from the tenant to the landlord, who is required to forward the tax to the State.
In Florida, there is now a sales tax loophole, if anyone is interested.
[addsig]
Quote:On 2007-07-09 13:54, kmaurer wrote:
... and eventually the entire business is flowing through the SDIRA.KEN,
I wonder if you missed the point Finnigamps is making. The business must be conducted entirely within the IRA from the beginning to be completely tax advantaged. This means that IRA funds are used to buy the property, fix the property, pay the holding and selling costs, and the IRA retains the profit.
Thanks!
Houses are cheap here and I can run them through the SDIRA entirely. But to get income for living expenses, I must do some conventionally.
And pay tax )o:
Also, I have to find a way to convert my IRA to ROTH.
This could bump me into a high tax bracket.
KEN
watch out for disallowed transactions and costs in the SD IRD.