how to record home-office and line of credit expenses for a LTD company

a client has asked if home office expenses can be recorded as business expensesthis is a LTD company (three shareholders)

I know that a sole proprietorship can prorate the home expenses based on the size of your office versus the size of the house

and I've seen posts that the home-office expenses should not be recorded monthly, but that the documents (utilities, rent, etc) should be taken to the accountant at year end so that the expense(s) become part on the year-end adjusting JE - is this the best advice to the client ?

another question relates to claiming personal line of credit monthly interest, apparently the LOC was used as a shareholder loan  - my thinking is that someone loaning funds to a company is entitled to be paid interest on the loan - but they are loaning funds to their own company - are they any regulations in this case ?

if there are no restrictions, would the JE be, db interest expense, cr s/h loan ?

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    Home Office expenses by shareholders of a corporation should be taken up with the accountant. You should be able to converse with accountant anytime during the year. It is my understanding that shareholders of an incorporated company cannot be claiming home expenses as business expenses as this can result in the requirement that to do so means the shareholder has to charge office rent to corporation and therefore same shareholder will have to claim office rent as income to personal earnings. Also there may be some complications regarding office rent area as a business use even tho home is for personal use in that upon sale of home the office portion may be subject to capital gains tax.

    As for LOC - you might find it best to let accountant know of this now in case corrections are required prior to last day of year-end. All shareholders should be contributing or withdrawing same percentage of monies into the company each time. If 3 shareholders and percentage of shares are 50%, 30%, 20% and cash injection is required of 10,000 then each must put in 5,000, 3,000, and 2,000 at same time. It may be that discussions take place at year-end between accountant and shareholders regarding the shareholder loans and how to best handle it.