HOW TO REPORT UNREIMBURSED MILEAGE ON S CORP

[yeknod]

Where do I report unreimbursed expenses for an S-corp. shareholder like mileage, home office etc?

Thanks in Advance!

[abctax55 · Accepted solution]

Form 2106 (for 2017...)

Nowhere (for 2018...)

Perhaps an accountable plan should be set up.

[mojocpa]

I remember in Lacerte we used to get a nastygram diag saying that unreimbursed expenses for S corp shareholders were not advised.

[abctax55]

I think we still do...I have a couple where they pay interest on funds used to acquire their ownership in the S-corp.
THAT does go on Sch E, page 2

[mojocpa]

Yep, I agree.

[rbynaker]

I think even the 2106 is questionable in some cases.  If the employee was just too lazy to submit the reimbursement forms then no deduction.  The IRS rep at the National Tax Forum I went to this summer wanted proof from the employer that the expenses were not eligible to be reimbursed.  I strongly recommend the accountable plan approach though.  I hate leaving money on the table, especially for 2018+.

That said, the employee/owner could put his CEO hat on, and make a policy that says "we don't reimburse for business mileage."  Then put his employee hat on and complain about how he's getting screwed by his employer. 🙂

Rick

[abctax55]

Sounds like the Three Face of Eve :joy:

[TAXOH]

:joy: