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    Client purchases items for patients

    tbanks
    Level 2

    I have a client who runs a rehab center and he sometimes purchases groceries, clothes, or gets his patients a haircut. Is this an expense for the business? What expense is it?

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    7 Comments 7
    BobKamman
    Level 15

    Is he just an employee?  It's not a 501(c)(3), is it?  Probably, a nondeductible expense.  

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    tbanks
    Level 2

    He is the owner and  the business is 501c3.

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    IRonMaN
    Level 15

    He owns a 501c3?


    Slava Ukraini!
    BobKamman
    Level 15

    501(c)(3) nonprofits don't have owners.  If he's the boss, tell him to take a pay cut and reimburse himself under an accountable plan.  

    BobKamman
    Level 15

    @IRonMaN He owns a 501c3?

    It's something like the NRA but without private jets to the Bahamas.

    IRonMaN
    Level 15

    But we haven't heard the whole story yet.  Maybe we are dealing with private jets to Cleveland.


    Slava Ukraini!
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    tbanks
    Level 2

    I don't know much about non-profits. This is why I asked the question. Thank you for your help.