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S corp home office stipulated in OpAgreement to be reimbursed rather than Schedule E?

dbtaxsolutions
Level 3

Is it okay to include in operating agreement that shareholders will be reimbursed for the share off office expense to the maximum of Simplified method rate, ie. $5/sq ft, max of 300sq ft? Doing this avoids preparing schedule E, if 1500 a year office expense is sufficient? Or is it better to do Schedule E? Thanks


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rbynaker
Level 11

I was not aware that the simplified method would meet the requirements for an accountable reimbursement.  That could just mean I haven't heard about it (until now).  I thought you had to reimburse a percentage of actual expenses.

Rick

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rbynaker
Level 11

I was not aware that the simplified method would meet the requirements for an accountable reimbursement.  That could just mean I haven't heard about it (until now).  I thought you had to reimburse a percentage of actual expenses.

Rick

View solution in original post

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