What is the best way to handle the payment of business expenses by an S corporation owner-employee?

If an owner-employee of an S corporation pays business expenses, no deduction is allowed. This is because of the suspension of unreimbursed employee business expenses from 2018 through 2025. If the corporation has an accountable plan to reimburse business expenses paid by the owner-employee, then the reimbursements are tax free to the individual and deductible by the corporation to the usual extent allowed. “Accountable plans” are explained in IRS Publication 463.