A few comments:
- Your facts are limited as they don't provide any detail on what type of business is involved, whether there is another business location being used, etc.
- I suppose, depending on the facts, you might be able to charge your S corporation to use the driveway and shed.
- But the issue is would this be reasonable given the facts of your situation?
- The IRS could possibly take the position that you are not really out economically by having to park your personal vehicles on the street.
- The IRS would ask why are the tools and supplies being stored in the shed. Is this a reasonable place for these items? Is there another business location that could be used (relates to bullet #1)?
- If your home is your business and you don't have any other location, requesting reimbursement for an expense that you aren't incurring would certainly be a question upon an audit. You would need to be able to support the reimbursement as reasonable and also provide support of how you arrived at the expense reimbursement amount.
- Would this be out of line, possibly not given the right facts. Just keep in mind your risk tolerance if audited. Being audited is not the end of the world, just be prepared to support your position.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
