Discussion:S-Corp-Final year expenses, procedure questions
From TaxAlmanac
| Revision as of 17:24, 2 November 2009 Kevinh5 (Talk | contribs) ← Previous diff |
Revision as of 18:57, 2 November 2009 RoyDaleOne (Talk | contribs) (Sometime, somebo) Next diff → |
||
| Line 9: | Line 9: | ||
| {{ForumReplyPost|UserID=Kevinh5|Date=2 November 2009|Text=I disagree, although it would be cleaner if he did do it your way. }} | {{ForumReplyPost|UserID=Kevinh5|Date=2 November 2009|Text=I disagree, although it would be cleaner if he did do it your way. }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=RoyDaleOne|Date=2 November 2009|Text=Sometime, somebody remind me why any shareholder gets any deduction in this situation. | ||
| + | |||
| + | There is no personal liability for these expenses, and no profit motive for paying the expenses, so where is the deduction?}} | ||
Revision as of 18:57, 2 November 2009
Discussion Forum Index --> Basic Tax Questions --> S-Corp-Final year expenses, procedure questions
Discussion Forum Index --> Tax Questions --> S-Corp-Final year expenses, procedure questions
Michaelstar (talk|edits) said: | 2 November 2009 |
| Situation is that a client who is an S-Corp is in their final year. In two years of operations the business failed. 100% owner, just shut down business, closed the checking account in June in a rush before all items were paid or things finalized.
The S-Corp has some final expenses to pay including the preparation of final returns. Final expenses may be in a range of around $7,500 after all is said and done. My belief is the corporate checking account should not have been closed until things are finalized by 12/31. The s/h will be paying for all final expenses personally. I believe he should contribute the money to the corporation and pay expenses with corporate checks and report all final expenses actually paid in the final year - even if that means he needs to open up a new checking account to do this. From a procedural point of view on this - what are your opinions? | |
| 2 November 2009 | |
| I disagree, although it would be cleaner if he did do it your way. | |
RoyDaleOne (talk|edits) said: | 2 November 2009 |
| Sometime, somebody remind me why any shareholder gets any deduction in this situation.
There is no personal liability for these expenses, and no profit motive for paying the expenses, so where is the deduction? | |
