Bart Posted June 2, 2015 Report Share Posted June 2, 2015 Taxpayer owns a building personally. The taxpayer's business occupies the building and pays the taxpayer rent. The taxpayer is active in the business. Does the taxpayer pay self employment tax on the rent? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted June 2, 2015 Report Share Posted June 2, 2015 More details on the type of building, multi-unit, commercial, or single family home. Quote Link to comment Share on other sites More sharing options...
rfassett Posted June 2, 2015 Report Share Posted June 2, 2015 More details on the type of building, multi-unit, commercial, or single family home. And business entity type. If it is a sole proprietor occupying a building owned by the sole proprietor, he is not permitted to rent from himself and therefore, indirectly the rent would be subject to self employment tax because he would not be permitted to deduct the rent on Schedule C. 2 Quote Link to comment Share on other sites More sharing options...
Bart Posted June 2, 2015 Author Report Share Posted June 2, 2015 More details on the type of building, multi-unit, commercial, or single family home. Commercial. Taxpayer's business in only occupant.And business entity type. If it is a sole proprietor occupying a building owned by the sole proprietor, he is not permitted to rent from himself and therefore, indirectly the rent would be subject to self employment tax because he would not be permitted to deduct the rent on Schedule C.Partnership Quote Link to comment Share on other sites More sharing options...
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