qbteachmt
Level 15

"Save having the taxpayer make the payments directly, Is there any way this can be done?"

Your client cannot pay personally for something they don't own. That would prove the point that the property isn't really the corporation's, so that would be "piercing the corporate veil." An argument can be made that this person already did that type of shenanigan. Is the property insurance and the mortgage and the deed all in the name of the corporation, and is this person not also on the hook as personally guaranteed? And does this person have tenant insurance, because they are living in a property they don't own. If you intend to try these tricks, at least do them right.

Again, your Client is benefiting, so that makes it Taxable Fringe income to the person, assuming this person lives in that house. Taxable through the W2 as payroll. Did this get done? Is this person the only shareholder?

You cannot try to hide all of this in a corporation, expect the corporation to pay the costs, and also live in it personally. Then, you cannot get to use it For Free, and you cannot get it as a Tax Write Off for personal taxes.

You seem to feel this person has the right to triple dip the tax rules.

Everyone here is telling you that nothing in this arrangement makes sense.

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