How to record journal entry for shareholder mileage?

OdieW · ‎July 13, 2023

Hello

I have a S-Corp where I am a shareholder member. I have kept a log of my mileage for when I have to travel for work related trips. How do I record this mileage into QBD? I know it's not an expense that I enter into QB but not exactly sure how I should be entering my mileage. Would it be Debit Mileage Expense and Credit Shareholder Distribution?

TIA

EDIT: Sorry I'm still working on my 2022 expenses to enter into QBD. Had health issues earlier this year and had to put in an extension for filing 2022. So I'm finally catching up on my bookkeeping.

I was told by a CPA that I can't claim my gas receipts for reimbursement instead I'm suppose to track my business miles to claim as a tax deduction. I'm also to use the IRS mileage rate to calculate how much mileage to claim.

Rustler · ‎July 14, 2023

In an s-corporation a distribution to one partner, means a required like amount be distributed to all partners (shareholders). Of course that can be "caught up" at year end, but this instance it does not make sense at all.

See this for an indepth explanation of mileage reimbursement in an s-corp
https://www.collective.com/blog/bookkeeping/how-to-deduct-s-corp-mileage/

Rainflurry · ‎July 14, 2023

@OdieW

Why are you under the impression that this is not an expense to the S-corp? It generally depends on whether the S-corp has an Accountable Plan or a Non-accountable Plan. If you have an Accountable Plan, you can submit your mileage log and be reimbursed for mileage without it being reported as wages. If you have a Non-accountable Plan, then the reimbursement should be treated as wages.

akmurray · ‎July 28, 2023

I have a 1 person LLC so I claim taxes on Schedule C. I do not want to be reimbursed monthly for my mileage.

What is the journal entry for this so I can reduce year end tax liability. I have a mileage app to tract my business miles.

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How to record journal entry for shareholder mileage?