home office s-corp

[Pandasia]

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?

[ThomasM125]

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.

[AmeliesUncle]

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