Tax Year Prior to 2020: S CORP Home Office Reimbursement Plan Question

mini 11 · ‎February 7, 2020

I have set up accountable plan for my S.Corp. I don't know where I should enter reimbursed home office expenses on Turbo tax 1120 S. Please help me. This is my first time filing with Turbo tax. Thank you in advance!

coeurdejoie · ‎February 7, 2020

I'm NOT an expert, so take this with a grain of salt (and maybe someone who is more of an expert will also post). Are you using TurboTax Business to create your 1120S? If so, I saw 2 places to post it, and I wasn't sure which to use. It doesn't seem to matter, however, as it didn't change the "bottom line" on my tax return. When you are on the deductions screen/tab, I put it under the "Vehicle Expenses" initially. However, after going in to read the help menus, the only one that mentioned mileage was the "Common Business Expenses" area under "Travel Business Expenses." This is where I ultimately decided to put the mileage reimbursement. I hope someone else will reply and confirm that this is the correct place, but as of right now, this is what I'm going with. Either way, it shows up on the "Other Deductions" table for the return.

**Edit: I did not read your initial post well. I think my eyes are blurring from looking at tax stuff for too long. I read your post as reimbursed "mileage" for some reason. Sorry about that! But in any case, I would put it in the category under the business expenses that fits best.

WKins2 · ‎February 7, 2020

It depends on what you are being reimbursed for? Generally you would log the expense under the expense account i.e. if it is business travel you would have a sub account called business miles expense reimbursement and you would log that amount there. If you are being reimbursed for client meals you would enter it under meals...

Ultimately the bill you submit to your company for reimbursement should be broken out into the expense categories or buckets. Meals, travel (more specifically hotels, air, rental car, miles), utilities...

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mini 11 · ‎February 8, 2020

Thank you very much!

I think I am going to enter home office expense under office expense since home office expense can be part of office expense. My home office expense includes some portion of electricity, water, gas, property tax, home insurance. I didn't include depreciation. Do you think it's fine?

JotikaT2 · ‎February 9, 2020

Yes, that is fine.

I have also attached a link to an article that helps elaborate on the logic and potential expenses of your home office.

Business use of home office

Below is a chart that you can also use to help you break out expenses which can be deductible as well as a link to the IRS publication with more detailed information.