Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Can an S Corp claim depreciation on a home that is still in the client's name, but is solely used by the S corporation

Highlighted
Level 2
She lives in a different home, and the S corporation is a child care, the only issue I see is the home is the clients name and not the S Corp.
Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 10
0 Cheers
5 Replies 5
Highlighted
Level 10
0 Cheers
Highlighted
Level 8

I'll say MAYBE.  

Had she done the mere ministerial act of deeding the property to the S Corp as she intended all along, and fixes that soon, MAYBE an argument can be made. 

0 Cheers
Highlighted
Level 10
Before we go rewriting history, it's generally regarded as a Really Bad Idea(TM) to put real property into an S Corporation.  Why not just have the S Corp pay FMV rent?  Then the owners can depreciate.
0 Cheers
Highlighted
Level 8
Darn - you got that trademark already!!
0 Cheers
Highlighted
Level 10
🙂

That one and when you need a Darn Good Reason(TM) to avoid a penalty for early withdrawal from a retirement account.
0 Cheers