Accounting, Payroll & Pension Issues/Accounting Question

Advertisement


Question
The owner of our small business has sold his home and is now commuting from another state and staying in a hotel 4 nights/wk.  He is charging that amount to the company Amex.  The CPA has told me to code it to "rent".  Is that legitimate ?

Answer
From an accounting viewpoint,  that type of expense would, I think, be considered "rent."

I think what you are really asking is whether or not that type of an expense is a valid deduction on the annual tax return.

If the tax preparer says it is, then that should answer your question. I am not sure of the correct answer as to whether that is a correct deductible business expense, it may well be. But, the tax preparer's decision is the one you should take.  

Accounting, Payroll & Pension Issues

All Answers


Answers by Expert:


Ask Experts

Volunteer


Arthur Naman

Expertise

General accounting and bookkeeping questions. Specific questions pertaining to: monthly bookkeeping, preparing financial reports; reconciling accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.

Experience

30 years' experience doing tax and accounting work

Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

©2016 About.com. All rights reserved.