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Tax Deduction Consulting: S Corporations Brigham City UT

In other words, deductions on an S Corporation are no different than any other allowable business expense and are subject to the same limitations and documentation requirements of any other business entity.

Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

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H&R Block
(801) 832-8932
2356 S FOOTHILL dr
SALT LAKE CITY, UT

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H&R Block
(435) 725-3335
855 E 200 N STE 112-3
ROOSEVELT, UT

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H&R Block
(801) 294-7998
75 E 2200 S
BOUNTIFUL, UT

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Robert Blake Accounting and Tax
(801) 763-8295
9626 Dorchester Drive
Cedar Hills, UT
 
Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block
(801) 495-4172
9151 S QUARRY BLVD
SANDY, UT

Data Provided by:
MainStreet Tax & Accounting Services
(435) 789-0691
1285 W. Hwy 40
Vernal, UT
 
H&R Block Premium
(801) 355-4649
888 S 200 E STE B
SALT LAKE CITY, UT

Data Provided by:
Liberty Tax Service
(866) 871-1040
6223 Highland Dr
Salt Lake City, UT

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Tax Deduction Consulting: S Corporations

Deductions on an S Corporation

In order to understand the deductions on an S Corporation, it is necessary to understand the basic tax structure the S Corporation and how it differs from other corporate entities.

An S Corporation is a corporate entity that has elected to be taxed under the provisions of Subchapter S of Chapter 1 of the Internal Revenue Code. This allows the corporation to avoid paying taxes directly on its profit, but rather to pass the profit on to the shareholders who pay the taxes on their individual income taxes. S Corporations are limited to corporations with less than 100 shareholders which normally, but not necessarily, makes them small business entities. The deductions on an S Corporation are obviously treated differently than on a normal corporation.

Although the deductions on an S Corporation are treated different for tax purposes, this is really more a matter of how the tax is computed and even more importantly how the actual tax filing is done. In a non-S Corporation, the forms that are filed treat many business expenses as deductions from the taxable profit. Since the profit in the S-Corporation is going to be distributed to the stockholders and filed as income on their individual Form 1040s, the cost of doing business expenses are considered just that, expenses, rather than deductions.

The items that would appear on a list of allowable corporate tax deductions are really just the costs associated with doing business such as insurance and travel expenses. These appear on a profit and loss statement in a slightly different form in the S Corporation. They need to be deducted from the actual income of the Corporation before the distribution is made stockholders. Since they are deducted from the income on the accounting statements of the Corporation, they are still not taxable profit regardless of the type of corporate structure.

In other words, deductions on an S Corporation are no different than any other allowable business expense and are subject to the same limitations and documentation requirements of any other business entity. The only difference that really exists is how they appear on the actual filed tax returns. The S Corporation will, ultimately, be calculating its "real" or "retainable" profit in the same manner, but the profit will be passed on the stockholders who will then enter it as income on their individual tax returns.

The individual stockholders, of course, will be able to reduce their tax liabi...

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