Question

One person C Corporation

Forum|Forum|6 years ago
May 12, 2020
1 reply
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A person that is the president of a C Corporation that sells goods online and uses their home to store inventory...Can they request reimbursement from the corporation for the part of their home that is used? Does their have to be an agreement in place? The officer does not currently get paid as an employee nor has he withdrawn any money

Not A Product Question

LudwigVan_fan

Employee

First, it is generally not required; but, it is a good idea to have transactions between a person's corporation and themselves put in writing.

Having said that, you could charge the C corp rent for storage, etc. Does the C Corp have its own internet, phones, etc.?

If the corporation is making a profit, it should pay you a reasonable salary.

These are my opinions, as to my knowledge, nothing is cut in stone regarding the questions you asked.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

Critter

Employee

The correct way to do this is to RENT the area to the Corp since the Corp doesn't own the home ... this way the Corp gets the deduction but you must report the income & expenses on the Sch E.