UICI Education & Training
Understanding 26 U.S. Code 248 & UICI's Deductible Preincorporation Expenditures
New Age Capitalism 101 & UICI
New Age Corporations 101 & UICI
Words & Language - The Key To UICI's Success
Organizing UICI's Corporate Structures In The Black Community
Understanding UICI, The Legacy of Slavery & Jim Crow
The Importance Of UICI's Educational Process
Understanding 26 USC 83(b) & UICI's Founder's Stock
Understanding 26 U.S. Code 248 & UICI's Deductible Preincorporation Expenditures
Section 8 Housing Choice Voucher (HCV) Program FAQ
Understanding Contract Law & Breach of Contract
Forum Information - New Age Capitalism, Corporations & Thinking
Otis C. Harrison's - The Story Of Words
Stopping Corporate Defamation Before It Gets Started
UICI's Untold Connection & History
UICI Invitation Only
UICI Compliance, Operation & Governance
UICI Minutes Past & Present
UICI Resolutions Past & Present
New Age Thinking, New Age Capitalism & New Age Corporations
UICI Owner
ACDNAC
 

Understanding 26 U.S. Code 248 &

UICI™'s Deductible Preincorporation Expenditures

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It is vitally important that every person in UICI™ during this preincorporation period keep accurate records. All out-of-pocket expenditures must be repaid at the earliest possible date. In another page at this website, I will discuss preincorporation in greater detail. Therefore, since out-of-pocket expenditures are not loans, nor can they be treated or considered as loans or constructive dividends, the money you spent must be returned to you.
This includes all monies paid in Retainer Fees and/or hourly fees paid to the Corporate Secretary and the Retainer Fees for the Registered Agent. The secretary of the Standing Committee must also turn in her Time Sheets to the treasure of the Standing Committee for taking minutes, mailing letters, contacting owners and preparing the minutes for inclusion in the Shareholder's minutes binder that is kept at the Registered Agent's office. 
This also applies to anyone that acted as secretary during the preincorporation period. Recording secretaries are paid according to the minimum wage per hour. However, the Standing Committee can pay at the Secretary's rate which is slightly higher. There is no retainer for the secretary of the Standing Committee. {Click here for South Carolina's minimum wage.} {Click here for Secretary's average pay rate}
When you receive your reimbursements for the money spent, do not include it on your taxes as income or compensation from UICI™. UICI™, the corporation, is merely giving you your money back. Note: For travel expenses and since there is no legal standard; and since none has been established, by resolution by the Board or the Standing Committee, it is best to use the same standard established by South Carolina law for juries - 14-9-250. That standard is $1.00 a day and 5 a mile. {Click here and then scroll down the page to review 14-9-250 SC Code of Laws}
Reimbursement for travel expenses is primarily used for field work by the Acquisition Committee. It can also be used for any corporate related field work by any Standing Committee member or any Director. Prior to November 17, 2015, All field work by the Acquisition Committee, any Standing Committee member or any Director must have an approval from the Standing Committee with the authorizing signatures of the Chair, Co-chair and the Witness. The Chair or Co-chair of the Acquisition Committee must turn in all Time Sheets to the treasurer of the Standing Committee. All Time Sheets must have the date, time and miles recorded for reimbursement. After November 17, 2015, Acquisition Committee Time Sheets and/or Reports or Invoices must be given to the Corporate Secretary.
The money UICI™ reimburses you, is a deductible expenditure for UICI™ that is authorized under IRC 248. Therefore, all out-of-pocket expenditures prior to November 17, 2015, must be given to the treasurer of the Standing Committee. If it is a Board expense; after November 17, 2015, Receipts, Time Sheets and Invoices must be given to UICI™'s Chief Financial Officer for reimbursement. If there is no Chief Financial Officer, reimbursements for Board expenses must be given to the President or Vice president. All use of facilities payments must be on Time Sheets, with or without Invoices and must have an authorizing signature. The same is true for worked performed, purchases of equipment, supplies, rent or lease payments and anything else that meets the requirements of IRC Section 248 that occurred prior to incorporation.
For meetings prior to August 28, 2015, Time Sheets must have the authorizing signature of an Accommodating Director in good standing with UII. For facilities use, after August 28, 2015, Time Sheets must have the authorizing signature/s of the Chair and/or Co-chair of the Standing Committee. After November 17, 2015, all Time Sheets for Board Meetings for facilities use, must have the authorizing signature of the President or the Vice President. After November 17, 2015, all Standing Committee Time Sheets must have the authorizing signature of the Chair or Co-Chair and the signature of the Witness. All monies payable and due for the Standing Committee, will be paid to the treasurer of the Standing Committee for disbursement.
All Standing Committee Time Sheets, Receipts and/or Invoices must be given to the treasurer of the Standing Committee prior to incorporation and the organizing meeting of the Board of Directors. After incorporation is complete, the treasurer of the Standing Committee will send copies of all Receipts, Time Sheets and Invoices to the Corporate Secretary. The Corporate Secretary will send them to the President to authorize reimbursement. These payments must be included in the minutes of the meeting and entered into the Minutes Binder that is kept at the Registered Office. Now that you are aware of these facts, it is also in everyone's best interest to know what knowledge of a fact means in South Carolina. {Click here to review Section 33-41-30 SC Code of Laws}
All reimbursements must be in accordance with state or national averages and must be paid before UICI™ can acquire any acquisitions or incur any new debts or account payables. All payments from the Standing Committee and/or the Board of Directors must be done at a meeting called for this specific purpose; during which, a resolution is passed and minutes are kept that identify the person/s and how much money the person/s was/were paid. This is necessary for corporate records. Review 26 U.S. Code 248 - Organizational expenditures - that follows below.

The Deductibility

of UICI™'s  Corporate Expenditures

 
26 U.S. Code 248 - Organizational expenditures

"(a) Election to deduct If a corporation elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenditures—
    (1) the corporation shall be allowed a deduction for the taxable year in which the corporation begins business in an amount equal to the lesser of—
        (A) the amount of organizational expenditures with respect to the taxpayer, or
        (B) $5,000, reduced (but not below zero) by the amount by which such organizational expenditures exceed $50,000, and
 
    (2) the remainder of such organizational expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the corporation begins business.
 
(b) Organizational expenditures defined The term “organizational expenditures” means any expenditure which—
       (1) is incident to the creation of the corporation;
       (2) is chargeable to capital account; and
       (3) is of a character which, if expended incident to the creation of a corporation having a limited life, would be amortizable over such life.
 
(c) Time for and scope of election The election provided by subsection (a) may be made for any taxable year beginning after December 31, 1953, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The period so elected shall be adhered to in computing the taxable income of the corporation for the taxable year for which the election is made and all subsequent taxable years. The election shall apply only with respect to expenditures paid or incurred on or after August 16, 1954."

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Images from Google's public source - 8/2015
2015 - George M. Sistrunk - All Rights Reserved. 

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