I have an s corp and own the office. My accountant says to pay myself a big rent and no salary. is this good?

I thought S corp had to take salary even if losing money. This years income is around 40k but expenses are also 40k or more. Thanks

No an with an S corp (or any corporation) if there is no money to take, you don't have to take salary.

If the office is owned separately from your corporation, then you can pay yourself rent. Just make sure you are receiving market value, not more.

Finally, if your sales are $40k and your expenses are $40k, you are breaking even and won't pay corp income taxes BUT you will end up paying income taxes on the rent. But won't have to pay the BS employee taxes.

Isn't your accountant a CPA? If you don't trust his judgment get a new CPA.

You don't want to commit fraud or anything by saving a few bucks. Find out what similar rent is in the area for your office size/location and pay that much in rent and the rest in salary... maybe you should get a new accountant.

I agree with the first answer.
I think your accountant is trying to save you money by avoiding the employee taxes.

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