How to Treat Self-employed Reimbursements for Expenses?

jody_ken · ‎February 2, 2020

I just started consulting as a self-employed sole proprietorship. For mileage, parking and other expenses reimbursed by my clients, do I treat these as income and then write-off as an expense? Or do I not include the reimbursements and associated expenses at all?

Thank you, Ken

AlexanderS08 · ‎February 2, 2020

Either option is acceptable, but it may be easiest to not consider the reimbursements income and not deduct them. The most important thing to remember is the double-benefit rule. You can't exclude from income AND take a deduction.

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AlexanderS08 · ‎February 2, 2020

Either option is acceptable, but it may be easiest to not consider the reimbursements income and not deduct them. The most important thing to remember is the double-benefit rule. You can't exclude from income AND take a deduction.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

jody_ken · ‎February 4, 2020

Thanks Alexander! Appreciate you replying so quickly. Nice! Sincerely, Ken

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How to Treat Self-employed Reimbursements for Expenses?