We’ve written articles before that explained how you can rent your personal residence to your S corporation (or C corporation). Rent it out for 14 days or less and you could get some really nice tax benefits. For starters:
- Your S corporation will get a tax deduction that flows through to you on the K-1, and…
- You receive tax-free income from the rental
Does this sound too good to be true? Well, it is true and I’ve received a lot of email asking questions about this great deduction. So here are straight answers to great questions about this outstanding deal that Uncle Sam has to offer. You’ll find them in my brand new article titled Tax Tips: Tax-Free Rental of Personal Home to Owner’s S Corp., Q&A.
Six questions and a quick click to the answers:
Question #1: Must the S corporation issue a 1099 to the homeowner renter? You’ll get the answer when you read the full article.
Question #2: Since the income is tax free, how do I, as the S corporation owner, deal with Form 1099 that I get from my corporation for its rental of my personal residence? You’ll get the answer when you read the full article.
Question #3: If a husband and a wife each own an S corporation, can they both rent the family home to their corporations for 14 days or less and thus pick up 28 days (or less) of tax-free income? You’ll get the answer when you read the full article.
Question #4: I’m a real estate broker who operates as an S corporation with 30 independent-contractor real estate agents. Can I hold educational sessions in my home under the 14 days-or-less rental strategy? You’ll get the answer when you read the full article.
Question #5: If I rent my home to my corporation for our employee holiday party and summer picnic, do I report the expense on my corporate tax return in the employee benefit section? You’ll get the answer when you read the full article.
Question #6: Is it necessary to prepare an agreement between the owner and the S corporation for the use of the owner’s personal home for these events? You’ll get the answer when you read the full article.