Client S corporation has a 2024 revenue of 400,000 and $200,000 of wage expense, which is paid to him. He has no other employees. He has a home (high mtg int and high RE taxes) and an office in that home. The prior CPA had the S corporation pay the owner rent for this office space. That means the S Corporation gets a rent deduction and the individual has rental income. And a $400 net investment income tax on his 2023 1040 results.

I think an accountable plan reimbursing the owner for home office costs would be better because no rental income would be reported. 

A comparison for 2024 shows a $500 tax increase with the self-rental.

Any thoughts?  Yawns of boredom? Huzzahs for something interesting?