Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

An owner paid a bill and wants the corp to pay his LoC each…

Customer Question
An owner paid a...

An owner paid a bill and wants the corp to pay his LoC each month for this bill we are a S-Corp. Is this ok with IRS

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I just did?

Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
3/17/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,695
Experience: Taxes, Immigration, Labor Relations
Verified

I assume that is a personal LoC - correct?

So it is OK when S-corporation pays bills for the employee - shareholder.

On books - these payments are recorded as wages to the employee or distributions to the shareholder - depending on circumstances.

The IRS will not have any concerns with that.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 month ago

If you want S-corportaion to deduct such expenses - assuming these are business related - these should be recorded as reimbursements made under an accountable reimbursement plan - assuming these are 100% business related LoC.

If there are personal portion - the employee will need to provide adequate reporting and only business portion may be reimbursed tax free.

Questions?

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 1 month ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all Social Security / Tax related issues.
Ask Your Own Tax Question
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,695
32,695 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Followup to: Forgetting for a moment the reimbursement, Are
followup to Barbara: Forgetting for a moment the reimbursement, Are you saying that self employed people are not allowed to take the insurance premium as expense on Schedule C? On Sch C it lowers the … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
If I report the distribution listed on K1 line 19A, the
If I report the distribution listed on K1 line 19A, the software adds the difference between net rental income and the amount distributed and taxes the difference. So, do I need to enter the amount on… read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
Where do I report capital gains distributions in Turbo Tax?
Where do I report capital gains distributions in Turbo Tax? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
What portion of 53.6 reimbursement milede is considered
What portion of 53.6 reimbursement milede is considered income? volundarry program … read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
I have a question about mileage reimbursement. I'm a
I have a question about mileage reimbursement. I'm a contractor for a government agency. They pay me 47 c per mile for mileage. However they include it in my income. And another issue is that the mile… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,066 satisfied customers
I have a question about how to report a 1099-Q distribution
I have a question about how to report a 1099-Q distribution from a Coverdell account. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
How is the sale of a partnership reported on the personal
How is the sale of a partnership reported on the personal 1040 tax return? and how is "personal" goodwill recorded on the partnership since it is closing? … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
87 satisfied customers
Do I report expenses reimbursed to a contractor and their
Do I report expenses reimbursed to a contractor and their vehicle allowance on the 1099 form? … read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
P Corp distributed to its sole shareholder land worth
P Corp distributed to its sole shareholder land worth $50,000. The land had a basis of $40,000 and was subject to a mortgage of $80,000. How much gain must P recognize on the distribution of the land?… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
On what lines do you report the final distribution of the
On what lines do you report the final distribution of the principal, no income, (K-1) as a trust beneficiary?… read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
For an S Corp, if the shareholder distribution is in excess
Hi Carter,For an S Corp, if the shareholder distribution is in excess of the shareholder's stock basis, this is treated as gain from the sale or exchange of the underlying stock; however, can you tell… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
Can the irs levy business account for personal taxes owed?
hello. can the irs levy business account for personal taxes owed? … read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
I am a shareholder for an S-Corporation. I use a personal
I am a shareholder for an S-Corporation. I use a personal vehicle for business expenses. Am I to use Schedule C or Schedule A on my personal taxes to deduct the business miles? … read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
If I am a delivery person and don't get reimbursed mileage,
If I am a delivery person and don't get reimbursed mileage , and receive SSD can I earn more than 1180/Mo in 2018 ? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
How do I CONTACT IRS TO REPORT A IRS RETURN WITH MISTAKES
how do I CONTACT IRS TO REPORT A IRS RETURN WITH MISTAKES 2016 … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I have an S corporation with two shareholders, same persons
I have an S corporation with two shareholders, same persons are the only employees if the S corporation. The corporation leases vehicles for the shareholders employees. The leased vehicles are both us… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
100% S Corp shareholder distributed a vehicle to himself.
100% S Corp shareholder distributed a vehicle to himself. Original cost 59711, A/D 54073, note 48313. He used the vehicle as a trade in for a personal vehicle. I would like 1120 S and k-1 assistance.… read more
taxmanrog
taxmanrog
Master\u0027s Degree
904 satisfied customers
I have a shareholders distribution based on business sale -
I have a shareholders distribution based on business sale - I don't know where to report on my taxes … read more
Lev
Lev
Tax Advisor
32,695 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x