How To Reimburse Yourself for Business Expenses

[@WQQKIE]

Short and to the point! I like it

[@ChadPavelcpa]

Glad it helped!!

[@glory3767]

Can I reimburse myself for startup costs like articles of organization and certificate of good standing. And some startup expenses from before I was able to form the LLC?

[@thebestken]

Are electronic items like computers, printers, router etc are completely reimbursed first year? Same question for furniture like tables, chairs, lockers etc. thanks.

[@ChadPavelcpa]

Any ordinary and necessary business expenses are deductible for a legitimate business! Fixed assets and equipment are expenses differently and may have to be depreciated.

[@mr_clean575]

Thanks! This answered my question exactly. Is the expense reimbursement report and official document you can find somewhere, or is it more informal than that? What might it look like?

[@ChadPavelcpa]

An excel sheet that itemizes the expenses is good documentation plus keep your receipts if you ever need to prove them in an IRS audit or examination.

[@terryd5360]

How much of home office utilities expenses can you reimburse yourself for. ( light bill, water bill, internet )

[@ChadPavelcpa]

Calculate % square footage of your home office is of your total home sq footage. That is the % you can deduct. Check with your tax preparer or software for exact details.

[@diamondnova7598]

Can I do this and do a tax write off as well with an Scorp?

[@ChadPavelcpa]

Yes, if you pay for business expenses from your personal bank accounts you can reimburse yourself for actual business expenses from your S-Corp.

[@AlesiaQuante-xc4nv]

How do you do this journal entry in Quickbooks Online@@ChadPavelcpa

[@rperez8041]

I have an LLC, I contributed to the business. Can I reimburse myself from the revenue, therefore do I pay taxes on the entire revenue OR the revenue after I pay myself back what I contributed?

[@ChadPavelcpa]

You pay taxes on all of your income (LLC net income, salaries, interest, dividends, cap gains etc). The money you contribute to your LLC is usually treated as equity or sometimes a loan to the company. That really doesn’t impact your taxable income since you pay tax on the net income your LLC generates plus all other income you personally earn.