If the Shareholder Agreement for the Sub-S requires a home office for the officer position, and no other office is available, then the company should be able to reimburse the expense (against documentation) and it should pass to the partner/employee as reimbursement rather than w-2 or 1099 income. Correct?
It should be the same for car allowance. Rather than including that reimbursement in income, it would be OK to give a seperate car allowance (again againts expenses) and not include that in w-2 or 1099 income.
