Tom Healy wrote:

- quote -

Unless you don't always itemize, or you have AGI-related phaseouts or
limitations. I always run legitimate corporate expenses through the
corporation (and back them out of Schedule A as appropriate) to set a
precedent for the year when where they appear makes a difference.

Phoebe

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- quote -

Of course I would. You can't deduct something that is
reimbursed unless the reimbursement itself is included in
income. Otherwise, it's a double benefit (non-recognition
of the reimbursement with deduction of the expense).

If he submits for reimbursement and that reimbursment is not
included in income, what expense is there for him to deduct?

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"David Haffey" <haffey[at]yahoo.com> wrote:

- quote -

In the context of an S corporation, there is no
self-employment tax issue. I would give different advice for
a partnership!

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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"Tom Healy" <thealycpa1[at]aol.com> wrote:

- quote -

It doesn't change taxable income but wouldn't it reduce
Self-Employment income to take these as business deductions?

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- quote -

Would you make the same statement for auto mileage
reimbursement using an accountable plan? I believe that if
the employee of the S corporation submits an accounting of
office-in-home expense, that is sufficient to avoid having
to include it in income.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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Stan McFarland wrote:

- quote -

You cannot take reimbursed expenses UNLESS the reimbursement
is included in your income.

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- quote -

When there is a sole owner (as in your situation) I usually
don't submit reimbursement for mortgage or tax, as that
would require an entry in line 21 of the Form 1040 or
reducing the Schedule A deductions. Leaving these off
doesn't change your taxable income.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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Stan McFarland wrote:

- quote -

That is the best way to it in your situation.

Regards,
Bill
{wpbrown[at]longwood.edu is an inactive email address.
Instead, use brownwp at the same university domain.}

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I have a question regarding the rules for home office
deduction and how they apply to Chapter S corporations. I'm
a sole owner of a Chapter S corporation, who has a home
office that meets the "regularly" and "exlcusively" tests.
I also have a accountable reimbursement plan so I (the
employee) can have the Corporation reimburse me for valid
business expenses. So can I take the normal home office
expenses (pro-rata interest on mortgage, utilities, etc) and
simply have the corporation reimburse me for these expenses?

Thanks,

Stan Mcfarland

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