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Level 2
posted Feb 24, 2021 3:29:58 PM

I want to lease office space and office equipment out to a C Corp and do write offs, do I have to start sole proprietor business?

WHAT I WANT TO DO

 

I want to lease in-home office space and office equipment out to a C Corp. I wonder if I can do write offs for the equipment and/or expenses on the office space, etc.

 

QUESTIONS

 

  1. Should I get a request a 1099-MISC for the rent/lease I get from the C Corp since it's over $600/yr?
  2. Do I need to declare or apply for anything from the government like a business license? I'm okay doing it all under my own name as sole proprietorship.
  3. What kind of things can I write off for in-home office space? Not sure where to start there.

0 1 322
1 Replies
Expert Alumni
Feb 24, 2021 4:02:52 PM

All you need to do to start a sole proprietor business is start the business. There is no special set-up. You will file Schedule E for the actual office rental and Schedule C for the equipment.

 

You can request two 1099s, one 1099-MISC for office rental and one for the equipment. You don't absolutely need them, though. You can enter your income as cash.

 

You will need to prorate the space in your home. The square footage that you rent out is business and the rest of the house is your personal. You will also prorate mortgage interest, property taxes, etc. Remember, this is not your office, it is their office. You will not use office in home. It will be as if you rented the room for a person to live there, from your side of things.