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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

Suesabell
Level 3
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.
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rbynaker
Level 13
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5 Comments 5
rbynaker
Level 13

No.

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Marc-TaxMan
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. 

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rbynaker
Level 13
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.
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Marc-TaxMan
Level 8
Darn - you got that trademark already!!
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rbynaker
Level 13
🙂

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