Discussion:Related Party Rent Transaction
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Discussion Forum Index --> Consumer Questions --> Related Party Rent Transaction
| 19 October 2009 | |
| I understand the related party rules regarding transactions between acrual- and cash-basis taxpayers.
My specific question is a taxpayer owns both a Sub-S Corp and an LLC. Both are accrual-basis entities. If the S Corp pays rent to the LLC does it need to be paid by year end, or does it not matter since both are acrual basis? I think it is the latter. But, I want to get other opinions. Thanks | |
| 19 October 2009 | |
| I think you are ok as long as both have the same accrued expense and accrued income in a matching time period. Also need to be sure that the accrued expense is paid in a reasonable time frame just like any other vendor. | |
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