Discussion:S- corp no salary - and auto,health insurance, meals deductions
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Discussion Forum Index --> Basic Tax Questions --> S- corp no salary - and auto,health insurance, meals deductions
Discussion Forum Index --> Tax Questions --> S- corp no salary - and auto,health insurance, meals deductions
Churchhill20 (talk|edits) said: | 15 January 2008 |
| Should a client who is a 100% owner of a "S" corp, who did not take a salary, and pays no wages of any kind to any employees, be able to take deductions through the S corp for business mileage deduction, health insurance, meals? The corp is in its first full year of operations with 75k in total sales and will take loss for the year, provided that above deductions are taken. The reason I am hesitant, is because the the above types deductions on their face appear that they would be related to at least one employee. However, with no salaries showing on return, I am not sure if these sort of deductions above would look a bit curious on the return. Thoughts. | |
MugsyMcGuire (talk|edits) said: | 15 January 2008 |
| I'd say the fact that your client is in the red this year is to his benefit. Of course, that's just my initial instinct without any research to stand on. | |
| 15 January 2008 | |
| Mileage deduction okay if adequately documented. Health ins paid for 2% or greater s/h may be deducted as compensation to s/h, should be added to W-2 wages (not subject to FICA tax) and would NOT in this case be an above the line deduction on the s/h's 1040, since W-2 must report FICA wages to allow the deduction above the line at the personal level. Meals okay if properly documented. | |
| January 15, 2008 | |
| There may also be an issue with the health insurance itself. How is it even possible to get a policy without having employees? | |
| 15 January 2008 | |
| Hi there is an employee the shhr/owner he just hasnt got any money to pay other than his health insurance. Not a problem no money to pay no pay. bye | |
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