Welcome Guest. Register Now!  


For 2014 Tax Tips For Year 2014.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-30-2015, 02:56 PM
Junior Member
 
Join Date: Jan 2015
Posts: 1
Self Rental

Taxpayer is an active member of an S Corp. Taxpayer also owns commercial building through a partnership. The S Corp rents one unit in the commercial building from the partnership. How would I report the self rental of the one unit on the partnership 8825 in order to flow to the 1040 as non-passive? Trying to reduce NIIT.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-31-2015, 01:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by carolf View Post
Taxpayer is an active member of an S Corp. Taxpayer also owns commercial building through a partnership. The S Corp rents one unit in the commercial building from the partnership. How would I report the self rental of the one unit on the partnership 8825 in order to flow to the 1040 as non-passive? Trying to reduce NIIT.
You, I mean the LLC, can charge the S Corp rent and the S Corp can deduct it.aslongas you are treated as r/e pro, it, rental income, is active income;Getting the real estate pro status just relieves you of the “per se” passive rule. You must report the rent as income on Sche E of your LLC. Since it is an S Corp, taking a home office deduction could be challenged by the IRS.Although the S Corp will still deduct the amount of rent paid on their coporate tax return on 1120S, only home mortgage interest and the real estate taxes paid may be expensed against the rental income you would report on your Federal 1040 Sch E.
This means that you would not be able to deduct any % of utilities, repairs, depreciation, etc on the Sch E.You may however, set up an accountable plan and have the S corp reimburse you for the portion of expenses that would have arisen from an office in the home situation.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Income exceeds $150,000. Why doesn't Turbotax offset passive losses from one rental property against passive income from second rental property? aboniadi Rental Real-Estate 4 03-17-2014 02:15 AM
Primary to rental to primary to rental for Active Duty Ren77 Rental Real-Estate 2 08-06-2012 04:23 AM
Can Suspended Losses from Rental Property converted to Personal Residence be released upon sale of another rental property? mountainaire Rental Real-Estate 1 04-05-2011 03:59 AM
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.