Ann is a majority shareholder in a corporation that owns an office building. She leases space in
Question:
Ann is a majority shareholder in a corporation that owns an office building. She leases space in the building for use in her CPA review course, pays approximately $20 per square foot in annual rent. The corporation leases the remaining space to other taxpayers who run another course reviews for approximately $10 per square foot. Luther’s main intent in negotiating the discounted lease was to secure the additional traffic generated by the other review courses in order to enhance the potential revenue for the CPA review course.
Can Ann deduct rent expense Since Ann is a majority shareholder in a corporation that owns an office building? If Yes, what is the amount of rent that Ann can deduct? Please have US rule/regulations to support the answer.
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis