turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Can my sole proprietorship pay me for rent of my home office?

I ran a corporate business out of my house and I'll be closing it at the end of the year.  I'm setting up a sole proprietorship to handle my writing income.  My corporation paid me rent for the office.  Can the proprietorship pay the same rent to me, or do I have to somehow expense the home office space.  I'll be using Turbotax Home and Business

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
MinhT1
Expert Alumni

Can my sole proprietorship pay me for rent of my home office?

No. 

 

In a sole proprietorship, the business cannot pay rent to you, as you would be paying yourself, which is not allowed by the IRS.

 

For the use of part of your home for your business, you can claim the home office deduction.  

 

Please read this TurboTax article for more information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
MinhT1
Expert Alumni

Can my sole proprietorship pay me for rent of my home office?

No. 

 

In a sole proprietorship, the business cannot pay rent to you, as you would be paying yourself, which is not allowed by the IRS.

 

For the use of part of your home for your business, you can claim the home office deduction.  

 

Please read this TurboTax article for more information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question