When your business pays you rent for a home office. I know it is deductible for the business. but how does that reflect on your persoanl tax return? Do you claim it as extra income?
2007-08-29 14:02:59 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You would file a 2106 (Employee Business Expenses) listing all of your expenses from your home office on Form 8829. other expenses would go right on the 2106.
Any reimbursement you received would be included on the 2106 if it was not included in your W-2. any positive difference would be deductible on Sch A subject to 2% of AGI.
If you were reimbursed more than your expenses and you didn't pay it back (and it wasn't included in your W-2) you would have to include the difference as income on Line 7 of 1040.
The following links should help.
http://www.irs.gov/pub/irs-pdf/f2106.pdf
http://www.irs.gov/pub/irs-pdf/i2106.pdf
http://www.irs.gov/pub/irs-pdf/f8829.pdf
http://www.irs.gov/pub/irs-pdf/i8829.pdf
2007-08-29 14:16:25 · answer #1 · answered by Mark S 5 · 1⤊ 1⤋
Is your business incorporated? If not, you'd just show the expenses on your tax return and not actually make a payment from the business to you personally.
2007-08-29 21:36:19 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
rental income is recognized on Schedule E, along with expenses associated with that rental income.
2007-08-29 21:35:50 · answer #3 · answered by Anonymous · 0⤊ 2⤋
no clue, I just live there, for a few months
let the owners deal with it I figure
2007-08-29 21:58:19 · answer #4 · answered by Anonymous · 0⤊ 1⤋