expensing

"Nathan S " wrote

You need to be conversant with your fellow partners about your expenses, and they in turn, should tell you about theirs.

How you can account for them depends on a lot of factors. What type of entity are you dealing with? You use the term "partners" but then say "company", so is it a corporation or a partnership?

Contributions - in and of themselves - are not income to the business. It could be possible to conform this transaction as an "expense reimbursement" for say, your portion of the personal use or personal meal. Then again, the personal use amount can go to your W-2 income (an expense to the business and income to you) if this is a corporation.

It might end up costing you more to account for all this than to just expense it out and forget about it. The term is deminimis. Meaning "too small to mess with".

The business could cap the amount of dinners each partner can expense through the business.

There are literally thousands of ways to account for any conceivable item of expense or income.

To Paul's wisdom I would add the following:

If you have partners, and questions such as those you've asked, you need a competent professional accountant who is trusted by all the partners. If you don't find one fast, your lawyer will soon be negotiating with the other partners' lawyers and generating lots more expenses for you to worry about.

"Nathan S "