Rent Your Home to Your S Corp For Tax Benefits

Did you know that you can apply the free-rent rule to rent your personal residence to your s-corporation for a deduction? The Masters Rules allows you to rent your personal residence for up to 14 days tax free. This allows you to charge your s-corp as a business expense for use of your personal residence. There are a few caveats that apply.

  • You can’t get a deduction for renting to your employer
  • You can’t take deductions for entertainment facilities
  • You can’t deduct rental to a related-party
  • You can’t deduct personal, family, or living expenses
  • You have to prove an ordinary and necessary business expense
  • The IRS could consider this a bogus rental with the substance-over-form doctrine

You can read the following article for more details