joanmcq Posted June 25, 2013 Report Share Posted June 25, 2013 I have a new s-corp client for whom I'm setting up the books. They have just rented a live/work space part of which will be their personal residence, part of which will be used in the business as a classroom & studio. I believe the space was rented personally, not by the corp, but I'll have to check on it. I was thinking, if not rented by the corp, the best way to deal with the expenses will be an accountable plan. Does anyone here have experience with live/work spaces that could give me some pointers? This type of arrangement is becoming more popular here, and it's likely this will not be my only client with this issue. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted June 26, 2013 Report Share Posted June 26, 2013 I believe, since the business is an S-Corp, they could actually pay rent to the individual for the portion of the space used by the S Corp. Of course, appropriate documentation should be maintained, such as a lease, and a 1099MISC for the rent at the end of the year. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted June 26, 2013 Report Share Posted June 26, 2013 I'd use the info on the 8829 (Office in Home Expenses for Schedule C) as a worksheet/template for the accountable plan. Lynn 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 27, 2013 Author Report Share Posted June 27, 2013 Good point Lynn! The corp can't rent from the individuals under the self-rental rules. This is one of those 'dream clients'. Not only because they want to set up everything right from the start and understand what running a corp entails, but are in the position to do a lot of referrals! Quote Link to comment Share on other sites More sharing options...
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