Unreimbursed Employee Expenses

I usually put the unreimbursed expenses into a shareholder loan acct of the 1120s.

dr. expense
cr. shareholder loan acct

These are not 1040 sched a expenses, but rather s corp expenses.

Does he have enough basis for the loss? If not it gets carried fwd.

Well, long-term I was planning to do the home office and business use of personal vehicle on a reimbursement/accountable plan. He didn't have the basis to take the extra expenses this year, and he didn't tell me how much of them there were until after we got the 1120S in the mail anyway.

Technically, these can be reimburseable business expenses, but they can also be unreimbursed employee expenses, too, right?? My real question is whether unreimbursed employee expenses can exist for a zero-wage job.

He's not an employee w/o a salary.

These are actually expenses of the business.Amend the 1120s.

There is a loss anyway. If the t/p doesn't have enough basis to deduct the loss, it gets carried forward until there is basis.

The correct j/e for the s corp is:

dr expenses
cr. shareholder loan acct

The shareholder loan acct is counted toward basis, even though it's a l/t liab.

CORP EXPENSES DO NOT BELONG ON THE PERSONAL TAX RETURN. THEY BELONG ON THE CORP TAX RETURN, EVEN IF YOU DON'T LIKE THE OUTCOME.AMEND THE 1120S.

You can't have it both ways.

It's very important for the shareholder of an s corp to have a salary, for a varitiey of matters.

If there is an accountable reimbursement plan, then an expense report w/b submitted to the s corp for payment and then reimbursed.

I assume the s corp did not pay any se health ins!If it did that belongs on a W-2.

I understand your point about the salary. There was nothing paid out on behalf of the shareholder, thank goodness, as there were less than $500 gross revenues. We're talking a very small star-up.

If the company has no fixed busines location other than a corner of this guy's basement, though, I don't see how the home office has to be business expenses. It is simply a necessary expense for the employee to properly perform their duties. Even with the vehicle mileage, I know of lots of companies that expect their employees to use their vehicle with no reimbursement ... why should it be different just because this guy also happens to be the sole shareholder?

Slavery is against the law.

You can't have employee expenses if you are not an employee!

In order to be an employee, you must have a salary!

You can't have it both ways.

These expenses s/b reimbursed by the corp, thus belong on the corp return. Amend the corp return.

hi and nice to meet you. in answer to your question a 100% shareholder of an s corp cannot deduct unreimbursed employee expenses on a sched. A or any where else. it must be done as an adjustment to basis. a 50% shareholder of an s corp may deduct those expenses as a tier II sched. A deduction.(subject to 2% agi limitation) a partner in a partnership can deduct those expenses dollar for dollar on the sched. E! hope this helps you. PS a corporate resolution must be made in the minutes book to elect the first two senarios rather than the corp. deducting the expenses.

hi and nice to meet you. in answer to your question a 100% shareholder of an s corp cannot deduct unreimbursed employee expenses on a sched. A or any where else. it must be done as an adjustment to basis. a 50% shareholder of an s corp may deduct those expenses as a tier II sched. A deduction.(subject to 2% agi limitation) a partner in a partnership can deduct those expenses dollar for dollar on the sched. E! hope this helps you. PS a corporate resolution must be made in the minutes book to elect the first two senarios rather than the corp. deducting the expenses

Hello ... has this been resolved satisfactorily? I have a client who is a 2% shareholder in an S-Corp and has unreimbursed expenses and have struggled with how to account for them. Any ideas from this post?