I have an S corp registered in NYC and have a client in Philadelphia that pays me corp to corp. to accomodate for 40+ work hours, I’ve taken out an apartment under the business name in Philadelphia, and now live here for the most part. I visit NYC every two weeks. My question is how do I justify which expenses incurred in Philadelphia are business related? Assumptions: business apartment, meals and entertainment, laundry, office related expenses, business memberships, etc. What about a car lease under the business? Gas? Previously, in management consulting, all work-related expenses while travelling for work were reimbursable Tips/Advice greatly appreciated
S corporation audit chances are ridiculously low. Take the expense as much as you can. Take mileage rather than actual expense.
@rich How do you define actual expense? Wouldn’t that plus insurance be higher?
Nyc-Philadelphia can easily claim 20000 miles per year.
Any other tips?
Anything spent for business is business expense. Since the company is registered in NY you have to pay NY tax