S-Corp with Home as Principal Place of Business

Apr 23, 2006 2 Replies

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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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.

accountable reimbursement plan

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