S-Corp reimbursement plans can turn into a very convoluted subject. I started writing a response that became a bit too lengthy. So, I decided that I should probably ask a few questions first before launching into a long explanation:
1.) Did the S-Corp pay you a wage?
2.) To clarify, is the S-Corp is reporting a net loss due to the reimbursement, or do you have a separate NOL on your personal return (either from this year or carried forward from other years)?
3.) What expenses did you include in the home office expense that the S-Corp reimbursed you? (i.e. mortgage interest, taxes, utilities, etc.)
Assuming you respond tonight, I will have a response to you tomorrow evening.
