Husband and I have a LLC which is run from our home.
We have a dedicated room that is 100% used as an office. Desk, Printer, phone etc.
Can we as a couple get reimbursed by the LLC for the expenses of the home office?
Expenses like electricity, mortgage, water etc.
No employees. We get K1s at the end of the year. no salary for us.
Hus and wife are the only 2 shareholders of family business.
If you are getting K-1s I will assume you elected your LLC to be taxed as a partnership.
I suppose your LLC could reimburse you for that. But I don't think it would change anything in your tax situation. If your LLC pays you instead of taking the home office deduction, the money goes right back to you. If the LLC can deduct it, you will be taxed on that as income. You may then get in essence a home office deduction for renting the room to the LLC. But the whole thing is meaningless because it's all your income and your deductions. I don't see how anything changes by doing what you propose.
By the way, and LLC doesn't have shareholders. Or partners. It has members.
In article snipped-for-privacy@googlegroups.com you write:
It sounds like you're eligible for a home office deduction which would amount to the same thing. See Pub 587, including how to report the expenses in a partnership:
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