LoTax wrote:

- quote -

The IRC disallows any deduction:

280A(c)(6) TREATMENT OF RENTAL TO EMPLOYER. --Paragraphs (1)
and (3) shall not apply to any item which is attributable to
the rental of the dwelling unit (or any portion thereof) by
the taxpayer to his employer during any period in which the
taxpayer uses the dwelling unit (or portion) in performing
services as an employee of the employer.

280A(c)(1) is the one that allows a home office deduction
for "certain business use."

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Bill Brown wrote:
- quote -


How come is it that the rent expense of the S corp would not
deductible in this situation? I thought it was the expenses
of the employee/landlord that relate to the rental income
that are not deductible [except, of course, for those that
are deductible...].

Was it the Feldman case? IRC section 280A, amended about
ten-fifteen years ago?

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"Alexander Villatora" <avillatora[at]yahoo.com> wrote:
- quote -

No, as long as the reimbursement is made under an
accountable plan, the reimbursement is not taxable (and not
subject to FICA, either.) The other side of that coin, of
course, is that the reimbursed expenses are not deductible
on your personal return, either. So, if the company
reimburses you for a portion of the mortgage interest, you
must reduce the mortgage deduction on your return by the
amount of the reimbursement.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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"Benjamin Yazersky CPA" <BYazDoNotHitReply[at]netscape.net> wrote:
- quote -

Would the reimbursement be taxable on my 1040? If so, would
it be subject to FICA?

Thanks for your help.

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"`Alexander Villatora" <avillatora[at]yahoo.com> wrote:

- quote -

accountable reimbursement plan

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

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Alexander Villatora wrote:

- quote -

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.

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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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