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realweb
October 19, 2022
Question

Fringe Benefit or Business Use of Home or Both

  • October 19, 2022
  • 1 reply
  • 0 views

I run a small C-Corporation and W-2 myself through it. Through the corporation I pay rent on a 1200 square foot condo which is where the majority of work takes place. With a few exceptions (kitchen, sitting area, bed, closet, bathroom) the majority of the condo has been retrofitted as business workspaces. 

I have calculate the usage of the premises for business purposes to be about 80% of the condo. And at a reasonable prevailing rate, the rental of such far exceeds the monthly rental cost.

Am I within compliance to simply write off the monthly rent as a business expense on my corporate tax return, or should the monthly rental expense be characterized as a fringe benefit to myself as an employee, and then the business use of home tax deduction taken personally? Or should there be some combination of both?

1 reply

A
Alex M
October 19, 2022

Hi there realweb,

 

It's important that all your taxes are filed correctly so that you can maximize the deductions you're eligible for. I can point you in the right direction for information about filing your taxes.

 

In order to know what can and can't be claimed on your business corporate taxes, I recommend speaking with your accountant or local tax expert, as they'll be able to guide you in the best practices when it comes to claiming expenses on your tax returns. If you'd like to find an accountant near you, you can do so on our Find an Accountant page.

 

If you have any other questions, feel free to reach out here.

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