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JPB007
March 19, 2023
Question

Shareholder expense paid by the Company through a deduction of income

  • March 19, 2023
  • 1 reply
  • 0 views

Hi!

I have a Professional corporation (P Corp) of which I'm the sole shareholder.  The P Corp receives distribution from my employer which deducts the premiums to be paid to the Insurance company (dental, life, invalidity).  The invalidity, for tax purposes, needs to be paid by me personally and therefore I need to reimburse the P Corp for the deduction. I have recorded the income with matched transactions and recorded the gross amount in Income and the deductions into expenses-Insurance.  I would like to make the proper entries to confirm the repayment to the P Corp through a debit of the Shareholder's contribution account.  Your input is more than welcome! Thanks and have a great day! 

1 reply

J
JamesM4
March 20, 2023

Hi JPB007,

 

Welcome to the QuickBooks Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be glad to share more info so you're on the right track with your work. 

 

In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. 

 

Let me know if this info helps. Otherwise, feel free to ask questions in the comments below.

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