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BeenFooled: "What is the most advantageous way from a tax perspective to pay for the rebuild? Could the company pay for the rebuild?"

hghcpa: "My advice would be for you to pay for the improvements personally and then rent the detached garage to your closely held S corp."<?I>

Thanks - a friend had suggested that. But since the S-Corp income is basically taxed at my rate, wouldn't deducting rent from the company only for it to show up as rental income on my personal return basically give me no advantage at all?

However, by having an official renter, you can deduct other expenses associated with the rented space as well as depreciation. Therein lies your advantage.
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