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Taxtom, Accountant
Category: Finance
Satisfied Customers: 2364
Experience:  25 Years in preparing Personal and Business Tax Retuns
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Our company offers an HRA plan and allows employees to carry

Resolved Question:

Our company offers an HRA plan and allows employees to carry over the unused portion of the employer contributed deductible into the next year. Do we have to book all of the unused deductible as a liability?
Submitted: 6 years ago.
Category: Finance
Expert:  Taxtom replied 6 years ago.

Taxtom :

Hello, You can only book the amount that can be reasonably estimated. So if 80% of the plan has been used in years past then you would book 80% of the balance of the account. These rules are set up by AICPA and GAAP under rules for accruing liabilities. Thank You Tom Please click accept.

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