C Corp Paying Rental

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#1
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Hello. We have a C Corp owner that has his personal rental being rented by the corporation. The Corporation is listed as the tenant on the rental agreement. The Owner pays for the rental and then the corporation refunds/reimburses the owner. Would this be a Home Office Reimbursement? Would only the portion of the rental that is being used for business be paid for by the corporation and rest is the responsibility of the owner?
 

#2
sjrcpa  
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Are you saying the rental property is the shareholder's personal residence? Owned by the shareholder? Or a 3rd party?
 

#3
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Owned by a 3-rd party. Shareholder lives and works from the residence. The corporation is the named tenant not the shareholder. Shareholder pays the rent and is reimbursed each month for the full amount of the rent.
 

#4
sjrcpa  
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The value of the personal use of the residence should be in the shareholder/employee's W-2.
 

#5
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Meaning they will be paying taxes on these reimbursements to them? Should they only be receiving a portion of rental reimbursement and the corporation only pays a portion equal to the % of dedicated work space?
 

#6
sjrcpa  
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You said the Corporation is the tenant per the lease. Not sure why this was done.
Why is individual paying?
I guess landlord doesn't care who pays.
Maybe corp only reimburses individual for its share, whatever that might be.
 

#7
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Yes, corporation is listed on the rental agreement as the tenant. The individual pays from their account and then submits for reimbursement and the corporation pays them 100% of the rental cost via a reimbursement. I am not sure why it was set up this way but it was like this before I got their books. It does not seem right to me based on us code but not 100% on where to go next with this as they are most likely going to need to change how things are done moving forward and how things are categorized and reported for the individual.
 


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