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

[mcgrath5]

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 ?

[Anonymous_]

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@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 ?

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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.

[MercieD1]

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.

[MercieD1]

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

Tax Advisor - Leasing property