TaxGuyBill
Level 15
12-07-2019
09:21 AM
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Yes, depreciation can be reimbursed.
No to the car payment, but vehicle interest might be reimbursable (I would need to double check that though).
The corporation can reimburse vehicle expenses for corporate business. The corporation has no business paying for anything personal. When a corporation pays for personal expenses, it is wages or a distribution to the shareholder. It also may "pierce the corporate veil" of protection, so the shareholder may not be protected if the corporation gets into trouble.
It may still be able to be considered a "reimbursement", but if an Accountable Plan was not done (which includes being reimbursed within 60 days of the business expense), then any reimbursements are taxable wages to the employee.
No to the car payment, but vehicle interest might be reimbursable (I would need to double check that though).
The corporation can reimburse vehicle expenses for corporate business. The corporation has no business paying for anything personal. When a corporation pays for personal expenses, it is wages or a distribution to the shareholder. It also may "pierce the corporate veil" of protection, so the shareholder may not be protected if the corporation gets into trouble.
It may still be able to be considered a "reimbursement", but if an Accountable Plan was not done (which includes being reimbursed within 60 days of the business expense), then any reimbursements are taxable wages to the employee.
