Can an S Corp claim depreciation on a home that is still in the client's name, but is solely used by the S corporation

[Suesabell]

She lives in a different home, and the S corporation is a child care, the only issue I see is the home is the clients name and not the S Corp.

[rbynaker · Accepted solution]

No.

[Marc-TaxMan]

I'll say MAYBE.  

Had she done the mere ministerial act of deeding the property to the S Corp as she intended all along, and fixes that soon, MAYBE an argument can be made. 

[rbynaker]

Before we go rewriting history, it's generally regarded as a Really Bad Idea(TM) to put real property into an S Corporation.  Why not just have the S Corp pay FMV rent?  Then the owners can depreciate.

[Marc-TaxMan]

Darn - you got that trademark already!!

[rbynaker]

🙂

That one and when you need a Darn Good Reason(TM) to avoid a penalty for early withdrawal from a retirement account.