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