Property Manager · Tallahassee, FL · Member since 2019 · 5 posts · 0 votes
I have two businesses. One is an LLC real estate company and the other is a S corporation. If I I own my own office, can my LLC charge my S corporation rent so that it would be tax-deductible for my S corporation but income for my LLC?
Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
7y
Yes, assuming the LLC owns the building it can lease it to your S Corp. It's called a "self-rental".
You'll want to rope in your CPA as there are intricacies involved with the passive activity loss rules and the new QBI deduction when a self-rental is involved.