The Deductibility Of Corporate Expenses Covered By Officers Or Shareholders


deductions for corporate expenses

Do you play a major role in a closely held corporation and sometimes spend money personally on corporate expenses? In general, you can’t deduct an expense you incur on behalf of your corporation even if it’s a legitimate business expense. That’s because you can only deduct expenses that are your own and the corporation is a separate legal entity. What’s more, the corporation won’t generally be able to deduct them either because it didn’t pay them. One solution is to arrange to have the corporation reimburse you for expenses you incur. Turn the receipts over to the business and use a corporate expense reimbursement claim form or system. Then, the corporation can deduct the reimbursement amount. Learn more about small business tax deductions.