Renting Office to Self

[Ketan Pattani]

Hi BP,

I am buying an office condo under my single member LLC and plan on leasing it to my wifes' S-corp LLC. Currently she does not make much profit at her current lease elsewhere. We were thinking that the rent could be just enough to cover the costs + any depreciation that I could take on the condo. During an initial consultation with the CPA, the CPA said that the rent would have to be fair market value. That may be too much rent since this place is bigger than her current place. Is there a IRS or Texas rule that I have to charge a minimum rent? I have read articles online which say that IRS might look at overcharging rent to increase passive income, but I am looking to actually undercharge rent.

Thanks,

Ketan