renting my home to my business

Forum|Forum|1 year ago
November 6, 2024
2 replies
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I am a beekeeper. Half of my garage is used to store woodenware and other equipment all year round. I also use my kitchen when pouring lip balm and beeswax products. Can my business rent my garage and kitchen from my primary residence for a deduction?

Best answer by rjs

However, if half of your garage is used "regularly and exclusively" for your business, you can claim a business expense on Schedule C for business use of your home, for that area of the garage. That's not the same as renting it to yourself.

I assume that you use your kitchen for other things besides pouring beeswax products, so the kitchen is not used exclusively for business. Therefore you cannot claim any expense or deduction for the use of the kitchen.

rjs

Employee

What type of organization is your business: a sole proprietorship, single-member LLC, multi-member LLC, partnership, S corp, or C corp?

jmac9393Author

single-member LLC

Mike9241

this won't work. you are a single-member LLC which is disregarded for income tax purposes so the iRS will look at this as renting to yourself.

from a blog from a CPA firm

Your business must be an S-corporation, C-corporation, or partnership in order to qualify for this tax benefit. If you are a sole proprietor or own a single-member LLC, then you don’t qualify.