A 30 year employee died and employer wants to pay funeral expenses. How can he do this AND GET A DEDUCTION?
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Last edited by BOB W; 07-25-2023, 11:35 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Looking at pub 535 To be deductible, a business expense must be both ordinary and necessary. I believe only the estate might be able to deduct The funeral expenses -
"How can he do this AND GET A DEDUCTION?"
He can't, unless maybe if his business is a mortuary, in which case see Pub 15-B section "No-Additional-Cost Services" which includes discussion of giving employee discounts on services normally sold by the employer..
I have to add my opinion, so stop reading if you don't want to know it.
It's disgusting that this person (almost certainly) wants to be seen as a caring, generous employer while still selfishly trying to get all the other taxpayers to involuntarily subsidize his "generosity". Always easier to do a good deed with someone else's money, right?
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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See if the circumstances of death falls under IRC 139.Comment
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So if the death was indeed the result of a "qualified disaster" (already a stretch), it seems payment for a funeral would not be taxable income to the recipient. But I don't see anything about it being a tax deduction for the payer.For purposes of this section[139], the term "qualified disaster relief payment" means any amount paid to or for the benefit of an individual-
(1) to reimburse or pay reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster,
...(3) by a person engaged in the furnishing or sale of transportation as a common carrier by reason of the death or personal physical injuries incurred as a result of a qualified disaster, or
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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I told the employer that he couldn't deduct it as an expense and it would be a shareholder distribution if paid with corporate funds.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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