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Ask The Accountant: Live Q&A with Tom Wheelwright

Wealthion - Be Financially Resilient

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Can You Tax Your Business Entity LLC?

The IRS says that you're, in order to use this rule, your rooms have to be approximately the same size. So my guess is no. And in fact, we don't treat the living room kitchen, dining room as three separate rooms. If you charge yourself rent, you're actually taking the deduction, but you're picking up the income. What's better is to just calculate the home office deduction at the entity level and then reimburse yourself for that amount. The reimbursement's not taxable, but the expense is deductible to the entity.

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