Instructions for Schedule E: Income - Gifts - Travel Payments, Advances, and Reimbursements
FPPC Form 700 (2018/2019)
FPPC Toll-Free Helpline: 1 (866) ASK-FPPC - (866) 275-3772
Instructions - Page 17
Travel payments reportable on Schedule E include advances and reimbursements for travel and related expenses, including lodging and meals.
Gifts of travel may be subject to the gift limit. In addition, certain travel payments are reportable gifts, but are not subject to the gift limit. To avoid possible misinterpretation or the perception that you have received a gift in excess of the gift limit, you may wish to provide a specific description of the purpose of your travel. (See the FPPC fact sheet entitled "Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans" to read about travel payments under section 89506(a).)
You are not required to disclose:
- Travel payments received from any state, local, or federal government agency for which you provided services equal or greater in value than the payments received, such as reimbursement for travel on agency business from your government agency employer.
- A payment for travel from another local, state, or federal government agency and related per diem expenses when the travel is for education, training or other inter-agency programs or purposes.
- Travel payments received from your employer in the normal course of your employment that are included in the income reported on Schedule C
- A travel payment that was received from a non-profit entity exempt from taxation under Internal Revenue Code Section 501(c)(3) for which you provided equal or greater consideration, such as reimbursement for travel on business for a 501(c)(3) organization for which you are a board member.
Note: Certain travel payments may not be reportable if reported via email on Form 801 by your agency.
To Complete Schedule E:
- Disclose the full name (not an acronym) and address of the source of the travel payment.
- Identify the business activity if the source is a business entity.
- Check the box to identify the payment as a gift or income, report the amount, and disclose the date(s).
- Travel payments are gifts if you did not provide services that were equal to or greater in value than the payments received. You must disclose gifts totaling $50 or more from a single source during the period covered by the statement.
Effective January 1, 2016, if an individual receives a travel payment that is reportable as a gift, he or she must disclose the travel destination. (See the Form 700 Schedule E instructions for information about other details that must be disclosed.) This applies to travel taken on or after January 1, 2016.
- Travel payments are income if you provided services that were equal to or greater in value than the payments received. You must disclose income totaling $500 or more from a single source during the period covered by the statement. You have the burden of proving the payments are income rather than gifts.
When reporting travel payments as income, you must describe the services you provided in exchange for the payment. You are not required to disclose the date(s) for travel payments that are income.
- Travel payments are gifts if you did not provide services that were equal to or greater in value than the payments received. You must disclose gifts totaling $50 or more from a single source during the period covered by the statement.
Example:
City council member Rick Chandler is the chair of a 501 (c)(6) trade association, and the association pays for their travel to attend its meetings. Because Rick is deemed to be providing equal or greater consideration for the travel payment by virtue of serving on the board, this payment may be reported as income. Payments for Rick to attend other events for which Rick is not providing services are likely considered gifts. Note that the same payment from a 501(c)3 would NOT be reportable.
[Begin illustration of example]
Name of Source: Health Services Trade Association
Address (Business Address Acceptable): 1230 K Street, Suite 610
City and State: Sacramento, CA
Business activity, if any, of source: Association of Healthcare Workers
Amount: $588.00
Type of Payment (must check one): Income
Description: Travel reimbursement for board meeting
[End illustration of example]
Mayor Kim travels to China on a trip organized by China Silicon Valley Business Development, a California nonprofit 501(c)(6) organization. The Chengdu Municipal People's Government pays for Mayor Kim's airfare and travel costs, as well as his meals and lodging during the trip. The trip's agenda shows that the trip's purpose is to promote job creation and economic activity in China and in Silicon Valley, so the trip is reasonably related to a governmental purpose. Thus, Mayor Kim must report the gift of travel, but the gift is exempt from the gift limit. In this case, the travel payments are no subject to the gift limit because the source is a foreign government and because the travel is reasonably related to a governmental purpose. (Section 89506 (a)(2).) Note that Mayor Kim could be disqualified from participating in or making decisions about The Chengdu Municipal People's Government for 12 months. Also note that if China Silicon Valley Business Development (a 501(c)(6) organization) paid for the travel costs rather than the governmental organization, the payments would be subject to the gift limits. (See the FPPC fact sheet, Limitations and Restrictions on Gifts, Honoraria, Travel and Loans, at www.fppc.ca.gov.)
[Begin illustration of example]
Name of Source: Chengdu Municipal People's Government
Address (Business Address Acceptable): 2 Caoshi St, CaoShiJie, Qingyang Qu, Chengdu Shi
City and State: Sichuan Sheng, China, 610000
Business activity, if any, of source: Association of Healthcare Workers
Amount: $3,874.38
Type of Payment (must check one): Gift
Description: Travel reimbursement for trip to China,
If Gift, Provide Travel Destination: Sichuan Sheng, China
[End illustration of example]
[End of SCHEDULE E: TRAVEL PAYMENTS, ADVANCES, AND REIMBURSEMENTS - Instructions - Page 19]