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Can my company make the payment directly to a credit card for the air fare on a 100% business trip as I have a singer member LLC?
Or do I need to pay for the airfare myself and then submit an expense report under my LLC's Accountable Plan? My other travel expenses are paid by my client (Lodging and M&IE) so there is no expenses to be reported & paid by my LLC. Also my LLC is taxed as an S Corp.
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Business & farm
Or do you have an S-Corp as well as a separate business that's an SMLLC?
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The company can buy your ticket directly, there is no requirement that it can only be a reimbursement. However, the rules for an accountable plan still apply. (If you failed to submit proof that the expense was work-related and the amount, the value of the ticket would have to be added to your income.)
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You can use a company-issued and paid credit card for any legitimate work expenses, provided that you provide proof to the company in a "timely manner." (There's no set definition of timely manner, certainly by the end of the tax year. My company requires the proof within 30 days of the expense.)
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What is the method to prove that a meal or flight is a business expense? I have read that you do not need to keep accounting because the IRS does not request invoices and understands that the accounting is correct, without asking for anything at all
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IRS Publication 463 provides detailed information describing the records you must keep to document business expenses. You would only be asked to provide those records in the event your return is audited, but you should keep the information for your own records.
For a flight, you would need a credit card statement showing the charges, a record of the dates of the flight, the location, and the business purpose for the trip.
For business meals, you would need the receipt, the name and location of the restaurant, the number of people served, and the date and amount of the expense. If all of that information is on the receipt, then that is adequate. Otherwise, you should have a record showing the complete details of the expense.
Take a closer look at Chapter 5 in IRS Publication 463 for more information.
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