Please let me know if I have this right:
For a single owner S-Corp:
Owner/Employee incurs meals and entertainment expenses which
s/he submit to the S-Corp which in turn issues full reimbursement amount. The S-Corp claims these charges as meals
which are only 50% deductible. The remaining 50% will then be applied to the
shareholder(s) K1 which will appear as income to the shareholder and they have
to pay taxes on this difference?
