How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1008
Experience:  Certified Public Accountant
93680669
Type Your Tax Question Here...
Mark Taylor is online now
A new question is answered every 9 seconds

I own a building that my company uses rent free. Should I

Customer Question

I own a building that my company uses rent free. Should I charge my company rent?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: We have a family business (publishing) and we relocated to a house that I own. I'm going to establish an LLC. Should I charge the company rent? We (the company) currently do not pay any rent anywhere.
JA: Is there anything else important you think the Accountant should know?
Customer: no
Submitted: 3 months ago.
Category: Tax
Expert:  Mark Taylor replied 3 months ago.

Hi, my name is Mark. I will be happy to help you with your question. Yes, you should be charging rent to the S-Corporation. You would report the income on your individual (Schedule e) tax return. You would be able to deduction depreciation, mortgage interest, repairs etc. on your schedule E. You would also need to look into your local sales tax rule to see if commercial rental income is taxable.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Related Tax Questions