CRM Expenses

What's Reimbursable

• Travel expenses (airfare, hotel, rental car, rideshare)
• Meals during business travel or client meetings
• Office supplies and equipment
• Software and subscriptions for business use
• Marketing and advertising expenses
• Training, conferences, and education
• Mileage for business use of personal vehicle
• Client entertainment with documented business purpose
• Rent / Office Space — with proper lease agreement and documentation

What's NOT Reimbursable

• Personal expenses of any kind
• Alcohol (unless pre-approved client entertainment)
• Traffic violations or parking tickets
• Personal travel or entertainment
• Expenses without receipts over $25
• Expenses submitted more than 60 days after purchase

Submission Requirements

• Submit within 30 days of purchase (recommended)
• Must submit within 60 days (IRS Accountable Plan requirement)
• Receipt required for all expenses over $25
• Receipt must show: vendor name, date, amount, items purchased
• Business purpose must be documented for every expense
• Meals & entertainment: must list attendees and business discussion topic

Approval & Payment

• Submissions reviewed within 5 business days
• Approved expenses paid within 15 business days
• Payment via check, Zelle, or direct deposit
• Denied expenses may be resubmitted with additional documentation

Mileage Reimbursement

Business mileage is reimbursed at the current IRS standard rate of $0.70/mile (2025). Document start location, end location, miles driven, and business purpose. Commuting miles are NOT reimbursable.

🏢 Rent / Office Space Reimbursement

Rent paid for office or business space used for S3 CRM operations is reimbursable under the following conditions:

• Written lease agreement — A signed lease must exist between the landlord and S3 CRM (or the employee). Use the built-in Lease Agreement Generator (📄 button in the header) if needed.
• Fair market value — Rent must reflect fair market value for comparable office space in the area. Provide evidence such as Craigslist, Zillow, or other listings showing comparable rents.
• Documented payments — All rent payments must be documented (bank statements, canceled checks, Zelle/Venmo receipts, etc.).
• Comparable rent evidence — Include screenshots or links to similar rental listings in the area to substantiate the fair market value claim.

Related-Party Rent Transactions

Rent paid to a related party (family member, partner, or someone you have a personal relationship with) is legal and deductible if all of the following are met:

1. There is a written lease agreement between the parties
2. Rent is at fair market value — not inflated above what comparable space costs
3. Payments are documented (bank records, receipts, etc.)
4. The landlord reports the rental income on their tax return

Home Office / Rented Space from Related Party

If you rent a portion of your home or a related party's property for business use:

• Only the portion used regularly and exclusively for business may be claimed
• The space should be clearly defined (e.g., "spare bedroom used as office, approximately 150 sq ft")
• The rent should be proportional to the space used (e.g., if office is 15% of total square footage, rent for that space should reflect ~15% of total property fair rental value)
• Take photos of the dedicated office space for your records

Required Documentation for Rent Expenses

• ✅ Signed lease agreement
• ✅ Payment records for each month (bank statement, canceled check, digital payment receipt)
• ✅ Evidence of fair market value (comparable rental listings)
• ✅ If related party: disclosure on the reimbursement form
• ✅ If home office: description and square footage of dedicated space

IRS Accountable Plan

S3 CRM operates under an IRS Accountable Plan. This means:

• ✅ Reimbursements are NOT taxable income to you
• ✅ No income tax or FICA withholding on reimbursements
• ✅ Reimbursements don't appear on your W-2

To qualify, you must meet all three requirements:

• Business Connection — expense must have a clear business purpose
• Substantiation — provide receipts and details within 60 days
• Return of Excess — return any excess reimbursement within 120 days

⚠️ Important Tax Note

If expenses are not properly substantiated under the Accountable Plan rules, reimbursements will be treated as taxable wages subject to income tax and FICA. This means they'd appear on your W-2 and reduce your take-home pay. Always submit complete documentation on time.