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Does anyone know how this works if the purchases are made by an individual and then some day eventually (hopefully) reimbursed by their company? eg if you have
by jedwhite 16y ago
Does anyone know how this works if the purchases are made by an individual and then some day eventually (hopefully) reimbursed by their company? eg if you have a startup and are bootstrapping and paying for everything yourself?
- Vivtek 16y agoIf you're an individual, the same law applies if you count it as a business expense. The usual disclaimers apply: I'm not a lawyer or an accountant, I'm just a sole proprietor. There's no legal distinction between being a sole proprietor with a daytime job and one without - income from your sole proprietor activity is taxed on Schedule SE for self-employment tax (Social Security and Medicare) and Schedule C for income tax from a business - and that's where this applies. The "I'm not really a business" rule is really, really not one the IRS believes in.