Can an s-corp deduct gas expenses if getting paid back?

[antonSugar93]

I'm a CCTV technician. I currently work with my "boss" driving his work truck, tools, and materials. Every two weeks I send in the hours I worked and receipts for gas and other supplies I buy with the business card. Can the gas and supplies be written off? If so, how should it be classified? 

[TomD8]

If you are buying the "gas and other supplies" and then being reimbursed by your employer, then there is nothing for you to deduct.

[AmeliesUncle]

Where does "S-corp" come into play?  Are you saying that YOU have a business that is an S-corporation?   From what you have said, it seems you are an employee, not a contractor.

[Opus 17]

If the business has an  "accountable" expense plan, then the business can reimburse employees or shareholders tax-free for ordinary and necessary business expenses.  Those expenses are also deductible by the business as ordinary and necessary business expenses.

Because you are reimbursed tax-free, there is nothing else for you to do, there is no deduction for you personally, nor do you report the remibursement as taxable. 

[antonSugar93]

I have an s-corp, my boss pays the s-corp and from there I pay myself. Can my s-corp write off the gas expenses even if he's paying for my services + gas receipts? 

[Opus 17]

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@antonSugar93 wrote:

I have an s-corp, my boss pays the s-corp and from there I pay myself. Can my s-corp write off the gas expenses even if he's paying for my services + gas receipts? 

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This situation is very confusing, and I don't want to comment further except to say, no business can deduct an expense it does not pay.

Perhaps you could explain how you own an S-corp, but you have a "boss" and you drive the "bosses'" truck.  Whose credit card are you using, yours or the bosses' card?

Let me break my own rule and go one step farther.  Here is one possible situation I can think of that fits what you have said:

Bob is a self-employed CCTV technician who has structured his business as an S-corp.  Bob is a subcontractor for Adam.  Bob drives a truck owned by Adam.  Bob buys gas for Adam's truck with Bob's business credit card, but gets reimbursed by Adam every two weeks.

In that case, Bob's gas expenses are not deductible unless Bob also reports the reimbursement as gross income for the business.  That will, of course, net out to zero, but it would allow Bob to report higher gross revenue, which might be an advantage in some circumstances even though the net profit is the same at the end.

If that doesn't help, we need more information, but I stand by my earlier statement that no business can deduct an expense that it does not pay. 

[TomD8]

Does your S-Corp include the reimbursement amount as income on its 1120-S tax return?  If so, then the S-Corp can deduct the gas expenses on its tax return.  You cannot deduct the expense on your personal tax return.