qbteachmt
Level 15

"To me, it makes sense for the couple to charge the business "rent" in the amount of the % of property tax, utilities, and depreciation, and then pay tax on the income."

Under the terms of An Accountable Plan, that could be nonreportable and nontaxable reimbursement, unless they set up something over and above the provision.

Example:

Business miles on the personal vehicle would be turned into the partnership to be reimbursed at IRS rates. if they decide to pay themselves Double the IRS rate, that becomes a taxable fringe benefit instead of Accountable Plan reimbursement.

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