Instructions for Schedule E: Income - Gifts - Travel Payments, Advances, and Reimbursements

FPPC Form 700 (2014/2015)
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" at www.fppc.ca.gov.

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: Effective January, 2014, certain travel payments may not be reportable if reported 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.
    When reporting travel payments that are gifts, you must provide a description of the gift and the date(s) received.

    When reporting travel payments that are gifts, you must provide a description of the gift and the date(s) received.

  • 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.
    

Example:

City council member Rick Chandler is the chairman of a 501 (c)(6) trade association and the association pays for Rick's 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.

[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]

[End of SCHEDULE E: TRAVEL PAYMENTS, ADVANCES, AND REIMBURSEMENTS - Instructions - Page 17]