New client is a solo practitioner with an s corp.
For years, he has owned his own office in a separate SMLLC.
He rents 100% of this space to his s corporation and reports the rental the activity on his personal tax return as a rental property on Schedule E (page 1).
In Hawaii there is a renters tax (an excise tax) on all gross rents.
I do not plan to change the way he does it. He's an older guy and I don't want to stress him out or recreate the wheel on him.
But for most of my clients, I simply help to set up an accountable plan reimbursement in situations like this. This provides the same net deduction, but it does not invoke renter's excise tax and the bookkeeping is easier.
Is there anything wrong or superior when comparing these methods in these situations?