Discussion:Lodging for Shareholder/Employee of an S-Corp
From TaxAlmanac
Revision as of 22:39, 20 August 2006
Discussion Forum Index --> Tax Questions --> Lodging for Shareholder/Employee of an S-Corp
| 20 August 2006 | |
| I am the owner and only employee of an Illinois s corporation in good standing, and my business is IT consulting. I recently was contacted about a contract in New York city, and after a phone conversation, my company won the subcontract, but will not be reimbursed by the client for traveling expenses. Since my company would have to pick up the expense tab, I'm looking at ways to limit lodging expenses, mainly by leasing or subleasing an apartment, and only returning back to Illinois every other weekend to save on flights.
Since I'm the owner of the corp, I understand that I am disallowed from paying a per diem for lodging and must reimburse actual expenses. How can I rent so that it's fully deductible? Does the corporation have to be the entity that signs the lease, or can I sign the lease myself and have the corporation reimburse me for the rent payments I make? What would be a valid receipt for substantiation in the latter case? What's the best way to go about it? Also, if the corporation is the leasing entity, can I write off rent on the final two months of a 6 month lease even if I'm only using it for the first 4 months? I want to make sure I stay inside the law, but if I can't pay lodging expenses on a pre tax basis than it's not worth it financially. | |
