diff --git a/crud.py b/crud.py
index 81e601a..db7f134 100644
--- a/crud.py
+++ b/crud.py
@@ -949,3 +949,116 @@ async def delete_balance_assertion(assertion_id: str) -> None:
         "DELETE FROM balance_assertions WHERE id = :id",
         {"id": assertion_id},
     )
+
+
+# User Equity Status CRUD operations
+
+
+async def get_user_equity_status(user_id: str) -> Optional["UserEquityStatus"]:
+    """Get user's equity eligibility status"""
+    from .models import UserEquityStatus
+
+    row = await db.fetchone(
+        """
+        SELECT * FROM user_equity_status
+        WHERE user_id = :user_id
+        """,
+        {"user_id": user_id},
+    )
+
+    return UserEquityStatus(**row) if row else None
+
+
+async def create_or_update_user_equity_status(
+    data: "CreateUserEquityStatus", granted_by: str
+) -> "UserEquityStatus":
+    """Create or update user equity eligibility status"""
+    from datetime import datetime
+    from .models import UserEquityStatus
+
+    # Check if user already has equity status
+    existing = await get_user_equity_status(data.user_id)
+
+    if existing:
+        # Update existing record
+        await db.execute(
+            """
+            UPDATE user_equity_status
+            SET is_equity_eligible = :is_equity_eligible,
+                equity_account_name = :equity_account_name,
+                notes = :notes,
+                granted_by = :granted_by,
+                granted_at = :granted_at,
+                revoked_at = :revoked_at
+            WHERE user_id = :user_id
+            """,
+            {
+                "user_id": data.user_id,
+                "is_equity_eligible": data.is_equity_eligible,
+                "equity_account_name": data.equity_account_name,
+                "notes": data.notes,
+                "granted_by": granted_by,
+                "granted_at": datetime.now(),
+                "revoked_at": None if data.is_equity_eligible else datetime.now(),
+            },
+        )
+    else:
+        # Create new record
+        await db.execute(
+            """
+            INSERT INTO user_equity_status (
+                user_id, is_equity_eligible, equity_account_name,
+                notes, granted_by, granted_at
+            )
+            VALUES (
+                :user_id, :is_equity_eligible, :equity_account_name,
+                :notes, :granted_by, :granted_at
+            )
+            """,
+            {
+                "user_id": data.user_id,
+                "is_equity_eligible": data.is_equity_eligible,
+                "equity_account_name": data.equity_account_name,
+                "notes": data.notes,
+                "granted_by": granted_by,
+                "granted_at": datetime.now(),
+            },
+        )
+
+    # Return the created/updated record
+    result = await get_user_equity_status(data.user_id)
+    if not result:
+        raise ValueError(f"Failed to create/update equity status for user {data.user_id}")
+    return result
+
+
+async def revoke_user_equity_eligibility(user_id: str) -> Optional["UserEquityStatus"]:
+    """Revoke user's equity contribution eligibility"""
+    from datetime import datetime
+
+    await db.execute(
+        """
+        UPDATE user_equity_status
+        SET is_equity_eligible = FALSE,
+            revoked_at = :revoked_at
+        WHERE user_id = :user_id
+        """,
+        {"user_id": user_id, "revoked_at": datetime.now()},
+    )
+
+    return await get_user_equity_status(user_id)
+
+
+async def get_all_equity_eligible_users() -> list["UserEquityStatus"]:
+    """Get all equity-eligible users"""
+    from .models import UserEquityStatus
+
+    rows = await db.fetchall(
+        """
+        SELECT * FROM user_equity_status
+        WHERE is_equity_eligible = TRUE
+        ORDER BY granted_at DESC
+        """
+    )
+
+    return [UserEquityStatus(**row) for row in rows]
diff --git a/migrations.py b/migrations.py
index 5efb00d..345e09a 100644
--- a/migrations.py
+++ b/migrations.py
@@ -363,3 +363,31 @@ async def m009_add_onchain_bitcoin_account(db):
                 "description": "On-chain Bitcoin wallet"
             }
         )
+
+
+async def m010_user_equity_status(db):
+    """
+    Create user_equity_status table for managing equity contribution eligibility.
+    Only equity-eligible users can convert their expenses to equity contributions.
+    """
+    await db.execute(
+        f"""
+        CREATE TABLE user_equity_status (
+            user_id TEXT PRIMARY KEY,
+            is_equity_eligible BOOLEAN NOT NULL DEFAULT FALSE,
+            equity_account_name TEXT,
+            notes TEXT,
+            granted_by TEXT NOT NULL,
+            granted_at TIMESTAMP NOT NULL DEFAULT {db.timestamp_now},
+            revoked_at TIMESTAMP
+        );
+        """
+    )
+
+    await db.execute(
+        """
+        CREATE INDEX idx_user_equity_status_eligible
+        ON user_equity_status (is_equity_eligible)
+        WHERE is_equity_eligible = TRUE;
+        """
+    )
diff --git a/models.py b/models.py
index ffde1c6..5881a8a 100644
--- a/models.py
+++ b/models.py
@@ -247,3 +247,29 @@ class CreateBalanceAssertion(BaseModel):
     fiat_currency: Optional[str] = None
     tolerance_sats: int = 0
     tolerance_fiat: Decimal = Decimal("0")
+
+
+class UserEquityStatus(BaseModel):
+    """Tracks user's equity eligibility and status"""
+    user_id: str  # User's wallet ID
+    is_equity_eligible: bool  # Can user convert expenses to equity?
+    equity_account_name: Optional[str] = None  # e.g., "Equity:Alice"
+    notes: Optional[str] = None  # Admin notes
+    granted_by: str  # Admin who granted eligibility
+    granted_at: datetime
+    revoked_at: Optional[datetime] = None  # If eligibility was revoked
+
+
+class CreateUserEquityStatus(BaseModel):
+    """Create or update user equity eligibility"""
+    user_id: str
+    is_equity_eligible: bool
+    equity_account_name: Optional[str] = None
+    notes: Optional[str] = None
+
+
+class UserInfo(BaseModel):
+    """User information including equity eligibility"""
+    user_id: str
+    is_equity_eligible: bool
+    equity_account_name: Optional[str] = None
diff --git a/views_api.py b/views_api.py
index f8bc5eb..755cfba 100644
--- a/views_api.py
+++ b/views_api.py
@@ -287,10 +287,30 @@ async def api_create_expense_entry(
 
     # Get or create user-specific account
     if data.is_equity:
-        # Equity contribution
-        user_account = await get_or_create_user_account(
-            wallet.wallet.user, AccountType.EQUITY, "Member Equity"
-        )
+        # Validate equity eligibility
+        from .crud import get_user_equity_status
+
+        equity_status = await get_user_equity_status(wallet.wallet.user)
+
+        if not equity_status or not equity_status.is_equity_eligible:
+            raise HTTPException(
+                status_code=HTTPStatus.FORBIDDEN,
+                detail="User is not eligible to contribute expenses to equity. Please submit for cash reimbursement.",
+            )
+
+        if not equity_status.equity_account_name:
+            raise HTTPException(
+                status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+                detail="User equity account not configured. Contact administrator.",
+            )
+
+        # Equity contribution - use user's specific equity account
+        user_account = await get_account_by_name(equity_status.equity_account_name)
+        if not user_account:
+            raise HTTPException(
+                status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+                detail=f"Equity account '{equity_status.equity_account_name}' not found. Contact administrator.",
+            )
     else:
         # Liability (castle owes user)
         user_account = await get_or_create_user_account(
@@ -1820,3 +1840,61 @@ async def api_run_daily_reconciliation(
             status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
             detail=f"Error running daily reconciliation: {str(e)}",
         )
+
+
+# ===== USER EQUITY ELIGIBILITY ENDPOINTS =====
+
+
+@castle_api_router.get("/api/v1/user/info")
+async def api_get_user_info(
+    wallet: WalletTypeInfo = Depends(require_invoice_key),
+) -> UserInfo:
+    """Get current user's information including equity eligibility"""
+    from .crud import get_user_equity_status
+    from .models import UserInfo
+
+    equity_status = await get_user_equity_status(wallet.wallet.user)
+
+    return UserInfo(
+        user_id=wallet.wallet.user,
+        is_equity_eligible=equity_status.is_equity_eligible if equity_status else False,
+        equity_account_name=equity_status.equity_account_name if equity_status else None,
+    )
+
+
+@castle_api_router.post("/api/v1/admin/equity-eligibility", status_code=HTTPStatus.CREATED)
+async def api_grant_equity_eligibility(
+    data: CreateUserEquityStatus,
+    wallet: WalletTypeInfo = Depends(require_admin_key),
+) -> UserEquityStatus:
+    """Grant equity contribution eligibility to a user (admin only)"""
+    from .crud import create_or_update_user_equity_status
+
+    return await create_or_update_user_equity_status(data, wallet.wallet.user)
+
+
+@castle_api_router.delete("/api/v1/admin/equity-eligibility/{user_id}")
+async def api_revoke_equity_eligibility(
+    user_id: str,
+    wallet: WalletTypeInfo = Depends(require_admin_key),
+) -> UserEquityStatus:
+    """Revoke equity contribution eligibility from a user (admin only)"""
+    from .crud import revoke_user_equity_eligibility
+
+    result = await revoke_user_equity_eligibility(user_id)
+    if not result:
+        raise HTTPException(
+            status_code=HTTPStatus.NOT_FOUND,
+            detail=f"User {user_id} not found in equity status records",
+        )
+    return result
+
+
+@castle_api_router.get("/api/v1/admin/equity-eligibility")
+async def api_list_equity_eligible_users(
+    wallet: WalletTypeInfo = Depends(require_admin_key),
+) -> list[UserEquityStatus]:
+    """List all equity-eligible users (admin only)"""
+    from .crud import get_all_equity_eligible_users
+
+    return await get_all_equity_eligible_users()