I own some shares in a farm c corporation another owner uses the corporation tractor and other farm equipment on his own land.

Asked over 1 year ago - Mccall, ID

Does he have to pay rent or lease on this equipment to the corporation and what are the tax ramifications. At present he pays nothing to the corp. How do we determine what would be owed to corp or IRS. He is also living in a corporation home he pays no rent for this also he built a shop and grain bins on corporate property he did have permission to build the shop but the land was and still in the corp nothing in written or deeded . I recently inherited these shares and am wondering of all the other things he is doing with corporate assets. really need to get this right. It's a mess with only verbal agreements. Does the corporation now own the shop since no land was deeded.

Attorney answers (1)

  1. Earl Kenneth Mallory

    Pro

    Contributor Level 16

    Answered . Your issue is complex cannot be explained in only a few words here. On the face of the few facts that you have outlined, it would seem that the other shareholder maybe misusing corporate assets. Please, take the issue to an attorney and take that attorney’s advice.

    This response does not create an attorney-client relationship. Unless you are already a client of the Mallory Law Group, pursuant to an executed employment agreement, you should not use, interpret, or rely on this response as legal advice or opinion. Do not act on any information in this response without seeking legal advice. Earl K. Mallory ekm@mallorylawgroup.com (561)743-3708.

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