# Self-Rental of Office Condo to S-Corp

**URL:** <https://discussion.mainstreetbusinesspodcast.com/t/self-rental-of-office-condo-to-s-corp/387>\
**Category:** Tax Strategies\
**Created:** [October 23, 2023, 3:07pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/self-rental-of-office-condo-to-s-corp/387 "2023-10-23T15:07:32Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![smtaylor34](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@smtaylor34](https://discussion.mainstreetbusinesspodcast.com/u/smtaylor34)\
**Post date:** [October 23, 2023, 3:07pm UTC](https://discussion.mainstreetbusinesspodcast.com/t/self-rental-of-office-condo-to-s-corp/387/1 "2023-10-23T15:07:32Z")

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Hi Mark & Mat,

We are considering self purchasing an office condo (in a new LLC) and leasing it to our small business (S-corp) as an office. However, I have read online that the IRS does not treat self-rentals favorably including treating the income as non-passive and the expenses as passive. Is this accurate? See this link although it is from 2012: [https://bradfordtaxinstitute.com/Content/Self-Rental-Tax-Deduction-Destruction.aspx](https://bradfordtaxinstitute.com/Content/Self-Rental-Tax-Deduction-Destruction.aspx)

Should we instead purchase the condo in the S-corp?

Also, given it is an office condo, how would we segregate the land vs the building and can we depreciate it under the bonus depreciation rules? The unit are sold (or leased) as office or retail spaces.

Thank you!