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IRS proporciona orientación sobre alquiler de casa de empleado a empleador. The employer is an S corporation of which T is the sole shareholder and sole employee. T rents a portion of his home to his employer. During the period of the rental, T used a rented portion in performing services as an employee. He also used the dwelling unit as a principal residence. T was concerned because he could not find a place on the applicable forms to claim certain business expenses and depreciation attr
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  IRS proporciona orientación sobre alquiler de casa deempleado a empleador. The employer is an S corporation of which T is the sole shareholderand sole employee. T rents a portion of his home to his employer. Duringthe period of the rental, T used a rented portion in performing servicesas an employee. He also used the dwelling unit as a principal residence.T was concerned because he could not find a place on the applicableforms to claim certain business expenses and depreciation attributableto the rental income.IssueHow should an individual who rents a portion of his dwelling unitto his employer and who uses the dwelling unit in performing services asan employee of that employer treat the expenses attributable to therental of the dwelling unith AnalysisIn general, Sec. 280A applies to individuals who use their homesboth for personal purposes and for the production of trade or businessincome. The section is designed both to ensure that the business use ofthe home does not result in an inappropriate conversion of nondeductible personal, living and familyexpenses into deductible expenses, and topermit the deduction of legitimate business expenses incurred in usingthe home to earn income.  Sec. 280A(a) and (b), taken together, permit an individual who payshome mortgage interest expense and state and local real property taxesto deduct those payments--if he meets the rules found in Secs. 163(h)and 164(a)(1)--regardless of whether that individual uses his residencesolely for personal purposes or for both personal and business purposes.Deductions for the business use of a home are potentially availableonly if the use falls into one of the four categories listed in Sec.280A(c)(1)-(4). Those categories are specified home office uses (Sec.280A(c)(1)(A),(B) and (C)); storage of inventory or product samples inthe home (Sec. 280A(c)(2)); rental of the property (Sec. 280A(c)(3));and use of the home in providing day-care services (Sec. 280A(c)(4)). Ingeneral, the business expenses associated with those uses are deductibleonly if the individual's business use of the home is regular(rather than occasional or incidental), and only to the extent theincome earned from the business use of the home equals or exceeds thebusiness expenses. Sec. 280A further requires both that expenses bereasonably allocated between business and personal use and that expensesbe taken in a specified order. In addition to these general rules,particular rules apply to some of the business uses listed above. Pub.587, Business Use of Your Home (2000), contains a detailed descriptionof the various Sec. 280A rules.T's questions involve a corporate employee whose receipt ofbusiness income and whose incurring of business expenses relate to threeof the Sec. 280A(c) business uses listed above--the home-office uses and  the rental use. For discussion, assume there are two hypothetical employees (E-1 and E-2), both of whom use part of their homes (but not aseparate structure detached from the dwelling unit) in performingservices for their employers and both of whom are the sole shareholdersof their S corporations. Also assume that E-1 receives a reasonablesalary from her employer (includible in her gross income under Sec.61(a)(1)) and seeks to claim a home-office deduction, and that E-2receives a reasonable rent from his employer (includible in his grossincome under Sec. 61(a)(4)) and seeks to deduct business expensesrelated to that rental.To claim a home-office deduction, E-1 must satisfyboth the generalrequirements of Sec. 280A and the particularrequirements of Sec.280A(c)(1)(A) or (B). Specifically, under Sec. 280A(c)(1), E-1 must showthat she used her home office exclusively and regularly, either as (1)her principal place of business in her trade or business of being anemployee or as (2) a place of business in which she meets or deals withpatients, clients or customers in the normal course of her business. Inaddition, E-1 must show that her exclusive use of the home office is forher employer's convenience.If E-1 can meet the general and specific rules of Sec. 280A, sheshould calculate her home-office expense deduction by using theworksheet contained in Pub. 587. Such expenses are generally claimed on   various lines of Schedule A. Pub. 587 (2000), pp. 16-17, contains anexample of how taxpayers should calculate and report the expenses, andprovide information about additional forms that a taxpayer may need insome circumstances to prepare and file.Because E-2 is receiving rental rather thansalary income from hisemployer, he is not allowed to deductbusiness expenses attributable tothe rental income. This result comes aboutnot because it is moredifficult to satisfy the rental-use tests thanthe home-office-use tests(indeed, ordinarily the opposite is true), but because of the particulardisallowance rule of Sec. 280A(c)(6).Sec. 280(A)(c)(6) provides that:Treatment of rental to employer. Paragraphs [c](1) and [c](3) shallnot apply to any item which is attributable to the rental of thedwelling unit (or any portion thereof) by the taxpayer to his employerduring any period in which the taxpayer uses the dwelling unit (orportion) in performing services as an employee of the employer.E-2 falls squarely within Sec. 280A(c)(6) because he is bothrenting to his employer and using the rented portion oficina virtual renta of his dwellingunit to perform services as an employee. Accordingly, Sec. 280A(c)(6)
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