View Full Version : Home Office/Garage Decuction?

GrassRoots Lawn Care
02-06-2001, 07:30 PM
A friend of mine who just completed her taxes courses to be a Tax Preparer (NOT accountant, just preparer) told me that since I incorporated this year that I cannot take my home office/garage deduction. I have heard this about C Corps but is this true under S Corp as well?

02-06-2001, 07:40 PM
Unfortunately I have heard similar rumors as well.


GrassRoots Lawn Care
02-06-2001, 10:51 PM
Guess not many in here have their business' structured as a S Corp.

02-06-2001, 10:57 PM
This is being discussed somewhat in The Elements of Business Forum ...I think under "unique deductions" you might get your answer there.

02-06-2001, 11:07 PM
From what my CPA told me you can. I am an S-corp and decided not to take the deduction since we are going to move in the next couple of years and you have to pay taxes on the capital gain on the home. Man the IRS makes this all so difficult. How about this A FLAT TAX.

GrassRoots Lawn Care
02-06-2001, 11:12 PM
Just got off the phone with my CPA. A corporation C or S CANNOT take home office/garage deduction. You can rent the space out to the corporation but then you have to declare the income as rental income on Schedule E. IRS really makes this stuff tough.

02-07-2001, 05:43 AM
One reason I am not incorporated.

02-07-2001, 09:15 AM
All the way.


04-19-2011, 05:17 PM
Here is a suggestion. If you are S Corp, talk over the idea of establishing an “Accountable Reimbursement Plan” with your accountant or tax guy. Structure the plan so that you are reimbursed by the corp. for your home office costs. Done this way, the situation will be treated as expenses to the corp. only and the reimbursement is not an income to you. No income is created, no FICA or Medicaid is not incurred.

04-19-2011, 06:23 PM
EXACTLY what wheatbookkeeping said! Think outside the box!