TurboTax

Level 1

Question

Using owner owned property to rent as a deduction as a c corp 1120 return

When I am completing the 1120 on Intuit - the question appears when filling out rent - "if not owned by an officer"

Can officer owned property that is rented by the corp be used as a deduction under the same c corp that the owner is 50 % owner ?

Level 15

@mcgrath5 wrote:
Can officer owned property that is rented by the corp be used as a deduction under the same c corp that the owner is 50 % owner ?

Yes, provided the rent paid by the corporation is fair rental value for the property.

If the rent is too high, there is a risk that the IRS will recharacterize the excess as a constructive dividend.

Employee Tax Expert

The answer is Yes.

The officer will have to report the rent on their personal return on schedule E.

I'll get you more info on that.

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Employee Tax Expert

Here is information on renting a property to a C Corp that you own:

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