Can the home owner take a home deduction or something, if my C-Corp is using space in the home as its office?

Asked 5 months ago - Saginaw, MI

I'm using my grandmother home address as my C-Corp business address. I want to use the basement of my grandmother home as a office. For this to happen, doesn't she have to be in a agreement with my C-Corp to allow my C-Corp to pay her rent on the space my C-Corp is using? When she file taxes can't she take a home deduction or something? What if my grandmother doesn't want to be in a agreement with my C-Corp to do this, does my C-Corp has to find another business address & office?

Attorney answers (2)

  1. Brook McCray Smith

    Pro

    Contributor Level 13

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    Answered . Taking your last question first, if your grandmother doesn't want you to do business out of her home, you must find another location.
    If your grandmother is willing to allow your corporation to conduct business from her basement, it can do so, subject to limits imposed by the applicable zoning ordinance. Assuming that your grandmother's house is in a residential neighborhood, the zoning ordinance will impose limits on the types of businesses that can be conducted. If your corporation is being noisy, attracting a large number of customers or doing other things that are objectionable to the neighbors, the local zoning administrator may get involved. As to the tax implications, you an pay rent, your grandmother can report it as income and then structure her income tax filing accordingly.

    You haven't identified the other parties involved in this question so I cannot determine whether I may have a... more
  2. Scot Curtis Putzig

    Contributor Level 6

    Answered . Of course your grandmother will have to agree to any use of her property and any rent would be considered income. Your main problem may, or may not, be the applicable zoning rules and regulations. Many cities impose restrictions on at-home businesses.

    DISCLAIMER: This answer is provided for general informational purposes only, is not intended as legal advice, and... more

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