S-Corp self rental - Augusta rule? - Spidell

S-Corp self rental – Augusta rule?

Log in to Post

Message Board S-Corp self rental – Augusta rule?

Viewing 3 reply threads
  • Author
    Posts
    • #188309
      Karen Walker
      Participant

      I have a S-Corp client that currently rents outside space for offsite company meetings and business events. Can a S-Corp rent space from a shareholder under the Augusta rule and have the rental income paid from the corporation to the shareholder be nontaxable if for less than 14 days? If the corporation pays the shareholder more than $600 for rent, a Form 1099 would be required. Would the shareholder report this as other income and then back out the amount as nontaxable rental income?

    • #188384
      Lynn Freer
      Participant

      The exclusion applies to vacation homes and dwelling units. So I believe the rent would be taxable to the shareholder.

    • #188411
      Karen Walker
      Participant

      Sorry, I wasn’t clear. The offsite meetings and business events would take place at the shareholder’s home. Instead of paying a third-party, the corporation would pay the shareholder for the use of their home for the meeting or event.

    • #188432
      Lynn Freer
      Participant

      I’m sorry I don’t know what the Augusta rule is.

Viewing 3 reply threads