Cash basis s-corp client paid expenses to a 1099 vendor in 2017 with his personal credit card but did not get reimbursed by company until 2018. which year is 1099 filed

Forum|Forum|7 years ago
June 6, 2019
2 replies
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Since client is a cash basis s-corp, expenses aren't typically deducted until paid. However, since a 1099 needs to be issued to the vendor, is that driven by the payment of the reimbursement to the employee/owner in 2018 or when he paid the expense, in 2017?

Best answer by MinhT1

The expenses are considered as paid at the time the credit is charged, regardless of when the credit charge is paid or when you are reimbursed by the S-Corp.

However, as it was paid with a credit card, you are not required to issue and file form 1099-MISC. The credit card company will handle all required reporting.

MinhT1Answer

Level 15

The expenses are considered as paid at the time the credit is charged, regardless of when the credit charge is paid or when you are reimbursed by the S-Corp.

However, as it was paid with a credit card, you are not required to issue and file form 1099-MISC. The credit card company will handle all required reporting.

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