USA Can a C-Corp deduct expenses using Per Diem Travel method for 100% owner/employee

Joined
Sep 30, 2016
Messages
1
Reaction score
0
Country
United States
Can a C-Corp deduct expenses using Per Diem Travel method for 100% owner/employee? Obviously it would have to be a Accountable Plan. Is there any limit on the Deduction?
 

DTA93433

VIP Member
Joined
Jun 14, 2016
Messages
113
Reaction score
10
Country
United States
If your employer reimburses you for your expenses using a per diem allowance, an employee can generally use the allowance as proof of expenses.incurred (for purposes of reporting adequately to the employer). However, for a 100% owner/employee this isn't the case. In a "related party" transaction,(such as this) the 100% owner/employee would have to substantiate ALL expenses incurred. There is no limit (per se); but the expenses must be "ordinary and necessary" and not 'lavish or extravagant".
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top