How to record rent as expenses | In the case of a sole proprietor / corporation, the method of raising the rent in the case of a corporation thoroughly explains the HR Note editorial article

If you use your home as an office, many people may think that rent can be recorded as expenses.If the rent is recognized by the expense, you can save tax.However, it is important to note that rent handling differs between sole proprietors and corporations.In this article, we will explain how to record rent and points to note.Please also use it as the benefits of rent costs and tax saving effects are also introduced.

table of contents

1.How to record rent as expenses

The more expenses can be recorded, the lower the taxable amount, which will save tax.So let's take a look at what kind of methods are about sole proprietors and corporations.

▼ If you want to read expenses comprehensively, here is the expense?Explain the basics of expenses, such as expenses that can be recorded in expenses and expenses that cannot be recorded

1-1.For sole proprietorship

If you are a sole proprietor, the following three patterns can be used as a way to use your home.・ Use your home as an office ・ I borrow the office separately, work at home.However, the entire rent is not expensive, and expenses must be calculated according to the ratio of the space used in life and work.

1-2.When incorporated

If a sole proprietor is incorporated, it will be possible to record expenses as a company house in the future.In that case, the following patterns can be considered.・ Lending to executives and employees as a rented company house ・ Lends the company purchased by the company to executives and employees ・ The company with the executives and the company have a rental contract, that is, the rental or owning house is not a personal name, but the company name.It is a method of treating a company house by concluding a rental contract as a company.

2.How to increase your rent by compare the housework

Here, we will explain how the sole proprietors can record rent as expenses.We will also introduce housework based on what kind of thoughts, and how to pay other payments other than rent.

2 -1.What is housework appropriate?

If you work at home, you will work in a room with desks, chairs, personal computers and printers.If you only use it for work, you can record the rent of the room area as expenses.In addition, it can be included in the expenses as part of the rent, taking into account the shared space used during work, such as toilets and kitchens.

If you are using 30 % of the rent of 100,000 yen in the rent of 100,000 yen in order to calculate the allocation of how much you use during your work, and to record as expenses by multiplying the rent.30,000 yen is recognized as expenses.This is the concept of a housework.

2-2.How to calculate housework

The rent of rental housing is apportioned according to the room and space used at work.In addition, if it is difficult to divide by area, there is also an idea to apply it to work time.However, if you have a house, you do not pay rent.Mortgage repayments are not allowed as expenses, but the interest rate paid to financial institutions is paid as interest.

2-3.Expenses that can be used for business expenses other than rent

It is not only rent that can be used for housework and can be expenses.You can also accommodate communication expenses and utilities expenses in expenses.In addition, if you use a private car at work, you will pay for car -related expenses such as parking, gasoline, toll roads, and vehicle insurance.

In the case of a home, you can also pay for property taxes and depreciation for real estate in housework.For example, if your own home is a shared name with your wife or relatives, you can divide the housework for equivalence.

In this way, the way of accounting for expenses differs depending on the situation and detailed conditions, so it is necessary to accurately understand the contents of the account.In the "Account and Journal Rules Book" distributed for free on this site, we will explain from basic accounts to journal examples according to the subjects.

For those who still have an ambiguous knowledge of accounts and journals, it is a reference book that can be referred to whenever you want, and it is very helpful, so please download it for free from here.

2-4.Points that sole proprietors should be aware of when expenses

What you want to be careful about when using your home as an office is that if you are a home, repayment of the mortgage and housing purchase cost will not be expenses.Even if you rent, the deposit is not expensive because you may be returned when you leave.

If you are renting a house directly from the landlord without going through a real estate company, it is important to conclude a contract with a lease agreement and leave it as evidence in order to record as an expense.

3.社宅のHow to record rent as expenses

Company houses can be treated as company houses even if the president and executives as well as employees can be used as a company house, and the rent can be recorded.The company housing system is an effective tax saving measure that can only be done because it is a corporation.I will explain how the expenses are included for each type of property.

3 -1.When raising the rent of the borrowed company house

There is a method of lending rental properties for housing under the name of the company and renting it to executives and employees as a rented company house.In this case, a part of the rent can be processed as an expense by the company.In addition, executives and employees living in properties are effective as a tax saving measure, as paying a fixed rent is not considered salary and tax is not levied.

If a sole proprietor living in a rental has become a corporation, it will be recognized as a company house by canceling the current lease agreement and reinforcing the lease agreement under the name of a corporate corporation.

3-2.When listing expenses for the company's house purchased by the company

If a company purchases a house to use it as a company house, real estate is a fixed asset for the company.Fixed assets other than land are depreciated every year as the value decreases year by year.Therefore, expenses will be recorded as depreciation expenses for the building price of the company house.In addition, fire insurance premiums, mortgage paid interest, repair costs, property taxes, etc. can be recorded as a company expense.

3-3.When renting expenses as a company house

If you use an officer or other office as an officer, you can record your expenses by creating a lease agreement between the officers and the company and concluding a contract.You can pay the lease to the officers from the company and record expenses as local rent.If a part of the house is used for the purpose of the office, it is necessary to calculate the rent by applying appropriate housework.

4.Advantages to expenses with the rent of the company house

If the corporation grows and the company's housing system is introduced, it may be possible to include expenses larger than the sole proprietor.Lending to executives and employees as a company house has many benefits to the company.Let's take a look at each merit.

4-1.You can record expenses related to company housing

The great advantage is that the taxable amount is reduced and corporate tax can be reduced because the expenses associated with the company's house can be recorded.If a corporation purchases a company house with a business loan, the borrowing interest is expensive, but the interest paid is also recognized as expenses.However, as mentioned earlier, the cost of purchasing company housing and the principal of borrowing is not expenses.

4-2.The purchased company house becomes a company asset

The purchased company house is recorded as a fixed asset for the company.The building price of the company house is gradually subtracted every year, but it is possible to record expenses as depreciation over a long period of time.

4-3.50 % of the rent of rented company housing can be recorded

If a company has a rental property as a rented company house, you can deduct the company's house rent received from executives and employees from the rent paid to the landlord, and you can record about 50 %.However, it is difficult for sole proprietors to claim that they are using 50 % of the area at work as a partial division of housework.

Fifty -fifty -fifty -fifty is not recognized in life and work.However, if you are a corporation, you will be treated as a company house.

4-4.Income tax / resident tax can be reduced

By dividing your home in housework, accounting for expenses, or being incorporated into a company house, individuals can save income tax and resident tax.This is because the more expenses, the less income.Also, if you pay a company house rent, you will be deducted from your salary and the taxable amount will be reduced.

Therefore, in addition to income tax and resident tax, the burden of social insurance premiums can be reduced, and as a result, it is advisable to increase the number of take -up.For example, if the company is paid as a housing allowance as a housing allowance, it will not save tax because the total tax will be paid.

5.Precautions when booking rent

There are various requirements when you use your home as a company house.To save tax, you have to understand the requirements correctly and follow the procedure.The following is a explanation of the points to note.

5-1.Company housing rental contracts are made by the company

If a house that has signed a lease agreement under the name of the board of directors is a company house, if a tax audit is entered if you continue to keep the name of the officer, it may not be accepted as a company expense.This is because if the resident has a direct contract, it will not be lending a company house.

Therefore, it is necessary to cancel the lease agreement and settle the deposit.After that, make a new lease agreement between the landlord and the company.Of course, the company will bear the deposit and key money.

5-1.If you have a house, you need to declare real estate income

If you want to treat the executive owner as a company house, the company will rent a company house from an officer.For this reason, the company pays the landlord executive the rent of the company house and records it as a company expense.Executives need to file a final tax return as real estate income because the rent income will increase in addition to executive compensation.

5-3.Rent collection of 50 % or more of the rent equivalent

If it is a company house for tax saving, it is not recommended that the company lends a company house to officers and employees free of charge.This is because if the company pays the rent of the company's house in full, it will be treated as a salary and will be taxed.

If the rent of the company house is collected by a deduction from the salary, if the amount of personal burden is too small for the rent equivalent, be careful as the difference from the appropriate amount may be taxed as salary.。It is said that the guide is 50 % of the rent equivalent.

5-3 -1.賃料相当額の計算方法

It is not "equivalent to rent = rent paid by the company".The amount equivalent to the rent is calculated by the statutory calculation formula.In the case of officers, the calculation method differs depending on the size of the house.In the case of employees, it is calculated in a certain formula regardless of the scale.Here, we will introduce a common calculation method for both officers (when living in a small company house) and employees.

(1) (Standard amount of property tax on the building of the building for the year) x 0.2 % (2) 12 yen x (total floor area of the building (square meter) / (3).3 square meters) (3) (Standard amount of property tax on the site of the year) x 0.The total amount of 22 % or more (1) to (3) is called "lease equivalent".

6.summary

As an effective tax saving measure, there is a way to treat your home as a company house.Unlike the appropriateness of the sole proprietor's housework, if you become a single president, you can treat it as a company house.The higher the rent, the higher the tax saving effect.

However, a change procedure is required to make everything in the personal name a corporate contract.The journal of the accounting is also deducted by the local rent, but in the case of company housing, rent from officers and employees is processed by miscellaneous income.In this case, it is important to note that it is tax -exempt unlike normal sales.

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