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S Corp

S corp year end dollars

Dear Linda,
I have an S corp formed in 2008. I am the sole owner. I did a reasonable payroll and tracked expenses, but still had $26k in the s corp at the end of the year and got hit hard w/ taxes. Friends are telling me to $0 out the balance at the end of the year, why and how? Won't it be taxed either way?

s corp income

I have and s corp with a partner at 50/50 and I put us on payroll for half of the year the other half was distributing checks to each of us .How do I show the remainder of the income if i only have w2 s for half the year?What form should i file 1099m maybe? Josh

Gifts to COntractors

Linda ,

Christmas time is a time for giving and showing your appreciation. Though small , I give gift cards from various companies like Starbucks , Applebee's etc to the contracting companies, Account Managers and the clients that I work with . Is this tax deductible as an expense for an S-Corp. If yes ,then what are the types of records that I should keep ? Should I write gift cheques instead ? or if instead of gift cards/cheques will getting gift items ( max value 40$) can be written of expense ?

Regards,
Santha

Consultants: w-2, 1099 or Corp-to-corp

Linda,

I am woking as a w-2 employee for an S Corporation that is owned by my wife.
I am receiving 50 % of the pay rate with the other 50 % going to pay taxes, expenses, possibly retirment funding.
For example lets say the pay rate is $80/hour coming to the S-corp. I get $40.00 per hour and the corp uses the other 40.00 per hour to pay taxes/expenses.

Can someone explain the difference between a S Corps stock basis and loan basis?

Hi,

I was wondering is anyone could explain the difference between the stock basis and the loan basis in an S corporation?

how to buy stocks from an S corp

Dear Linda,
a friend of mine offered, in exchange to services, a percentace of its S-Corp (he is the 100% owner). He wants to give me a single stock certificate for 80 stocks(20% or the 400 S-Corp stocks).
Is that correct? And is that enough to give me ownership of 20% of the company?
Thanks a lot
Simone

S Corp Per Diem

Hi Linda,
Very intelligent answers, thanks.
I have an S-corp in TX and the family lives in TX. My contract is in DC and pays me $105 per hour. I come to DC every Mon and leave back to TX, every Friday. I have an apt in DC. This is a multiyear contract in DC, but I don't want to move my family here.
My Q' - After one year, I can't claim any per diem in DC - is this correct?
Any other way to deduct all the travel, housing, food expenses incurred in DC after one year? These come to about $30,000 per year.
Thanks,
Larry

S Corp Business Vehicle

Hello Linda,

I am single owner S Corp hoping to expand with more employees. Now I am re-imbursing the business mileage expenses but I found a good deal on a car and want to get that for some ( not all ) business travel. In that case , will IRS allow me to own a business vehicle and still get re-imbursement for my business travel when I use my personal vehicle ?

Regards

cost basis limitations on losses

I need an answer to a "s" corp Basis.

Lets say I put 4500 into a loan for a new S Corp which I am 6.47% part owner. My part of the loss is (16,600) this year. Is my 16,600 loss on my personal taxes deductible in total or is it limited to my cost basis of $4,500?

S Corp - Money out of business bank account

Hi Linda,

What is the IRS Tax implication of taking money out of the S Corp's bank account and maintaining it as cash balance in the books. Does IRS Mandate that the money bemaintained in a bank account ?

If yes then how do I take money as a loan from the S Corp's bank accounts ? What is the document that I have to maintain and where should I find the rate at which S Corp must lend the money to a third party - who is not a shareholder or employee ? Is there any extra tax implication if the money is loaned to shareholder, even if they pay interest ?

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