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February 24, 2025
Question

home office s-corp

  • February 24, 2025
  • 2 replies
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We are an s-corp and my husband and I have a home office. Our accountant has it set up for our  s-corp to pay us rent and then deduct it, which is then counted as income on our personal return.   Is this rent considered part of our shareholder draw?

    2 replies

    February 24, 2025

    No, it is not a draw since the company deducts it on their tax return. A draw would be a non-deductible transfer of funds to the shareholders.

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    February 25, 2025

    You may want to inquire of him why he set it up that way rather than an Accountable Plan.