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What's the question?
Who is the rent being paid to?
Is the rent being paid to the Corporation's owner?
What is the rent for & does it benefit the owner personally?
Well, you don't have to use the "safe harbor" rules.
However, you do have to make a reasonable allocation of business use verses personal use.
Just because a check is made out to you doesn't mean it is recorded as income to you.
If you are paying the rent to the Apartment Owner, then the corporation could reimburse you for it's share of the rent expense and that would be an expense on the books of the corporation and wouldn't appear anywhere on your return as you would file expense reports with the corporation for all of your expenses to be reimbursed and the portion of the apartment used for business would just be one of those expenses.
I would, however, make sure that I had good documentation as to how I determined the business use percentage, keeping in mind that old accountant's saying "pigs get fat, hogs get slaughtered".
The bot***** *****ne is why the so-called "safe harbor" was developed is because like automobiles, this office in home area has been widely abused and realistically most homes don't get used for business purposes anywhere near what has historically been claimed; so now we get more rules, etc.
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I understand. However, the IRS takes the position that the facility is residential in nature; the owner is living there; sleeps there, eats there; relaxes there; entertains there, and also does substantially all of his/her work there. Further, a typical office does not have a kitchen, although most have sinks, tables, chairs, refrigerators, microwaves); does not have bedrooms; so it's up to us to come up with how each area of the apartment we are using for business is used; do we meet clients there? do we store inventory there (if applicable), do we maintain a desk & office equipment there? do we have any employees working there? Whatever, it is evaluated on an individual basis as it applies to a particular business use.
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