Reimbursement for Board of Directors

"Bill Brown" <brownwp[at]longwood.edu> wrote:
- quote -

> p3tki[at]aol.com wrote:

> > I serve on the Board of a small Not for Profit Corp.
> > Boardmembers are not compensated but are reimbursed for
> > expenses (such as travel). I own a small consulting S Corp.
> > Can the Not-for-Profit write my reimbursement check to the
> > S Corp?

> The first question that comes to mind is why do you want to
> do that?
> If the expense reimbursement is part of an accountable plan
> then there is nothing for you to report anywhere. I see
> nothing to gain by doing what you suggest. I do see
> additional problems when it comes time to prepare the
> S-corp's tax return.

In addition to the two replies already received, I would be
hesitant to do what you're proposing. First, you have been
selected to serve on the board of directors, not the
corporation. Second, doing what you are proposing is really
using the corporation for personal purpose due to the first
point above. Your involvement on the board is outside of
the corporation's business activities. Your expenses are
being reimbursed, not the corp's. This all leads to what I
consider the most important point.... Using corporations for
personal purposes, any personal purposes, purposes gives
opposing counsel an opening for piercing the corporate veil
should you ever need the liability protection of the
corporation.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

p3tki[at]aol.com wrote:

- quote -

> I serve on the Board of a small Not for Profit Corp.
> Boardmembers are not compensated but are reimbursed for
> expenses (such as travel). I own a small consulting S Corp.
> Can the Not-for-Profit write my reimbursement check to the
> S Corp?

Probably, but why would you want to do that?

Gene E. Utterback, EA, RFC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

p3tki[at]aol.com wrote:

- quote -

> I serve on the Board of a small Not for Profit Corp.
> Boardmembers are not compensated but are reimbursed for
> expenses (such as travel). I own a small consulting S Corp.
> Can the Not-for-Profit write my reimbursement check to the
> S Corp?

The first question that comes to mind is why do you want to
do that?

If the expense reimbursement is part of an accountable plan
then there is nothing for you to report anywhere. I see
nothing to gain by doing what you suggest. I do see
additional problems when it comes time to prepare the
S-corp's tax return.

Regards,
Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

p3tki[at]aol.com posted:

- quote -

> I serve on the Board of a small Not for Profit
> Corp. Boardmembers are not compensated
> but are reimbursed for expenses (such as
> travel). I own a small consulting S Corp.
> =A0=A0Can the Not-for-Profit write my
> reimbursement check to the S Corp?

Well, it _could_ -- but why would you want it to? Presumably
this "income" would be written off immediately with the
balancing expense, which was yours, personally. Much more
straightforward to have the check written to you, as a
reimbursement for expenses. No income involved, no
complications.

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I serve on the Board of a small Not for Profit Corp.
Boardmembers are not compensated but are reimbursed for
expenses (such as travel). I own a small consulting S Corp.
Can the Not-for-Profit write my reimbursement check to the
S Corp?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >