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