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I am a 1 person incorporated C-Corp software development company. (Although, I currently usually do not use the C-corp for most checks and contracts which just go straight to me as an individual.)

I am considering using my business credit card to pay for my monthly apartment rent, where 90% of it is used as my office. 10% is a tiny bedroom, which I am considering paying back my business account the "sublet" difference. Effectively, this means that I still expense 90%.

Am I simplifying systems? Are there any complications that may arise from this?

Would the IRS still be okay with this?

  • 4
    I suspect the IRS won't believe that you use all of your apartment except for a tiny bedroom exclusively for business. – Pete Becker Oct 27 '15 at 22:58
  • Kitchen? Bathroom? 90% is entirely unbelievable. – Joe Oct 28 '15 at 1:11
  • Well it's between 80 and 90%. it's one of those city apartments with a tiny bedroom+full bath and large living area and external full bathroom – ina Oct 28 '15 at 4:18
  • Kitchen usage - I'm usually on business calls or reviewing client documents while making/eating breakfast – ina Oct 28 '15 at 4:18
  • 3
    @ina: I don't think that's sufficient. You have to use an area exclusively for business for it to count as a home office. – BrenBarn Oct 28 '15 at 7:34

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