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Tax Deduction Consulting: S Corporations Washington DC

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.

Joseph Bonaccorsy
2011 Crystal Dr.
Arlington, VA
Company
Title: Financial Advisor
Company: Core Advisory, LLC
Type
Registered Investor: Yes
Education
Florida Tech /CFP
American Intercontinetal/BA - Maga Cum Laude
Institute of Business Finance/MSFS
Years Experience
Years Experience: 15
Service
Wealth Management,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Business Income Tax Planning,Fee-Only Comprehensive Financial Planning,Stock Market Alternative,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribu

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Barbara J. OLeary (RFC®), CEP
(703) 370-7666
101 South Whiting Street Suite 203
Alexandria, VA
Qualifications
Years of Experience: 18
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Healthcare Accounts, Compensation Plans

Data Provided by:
B. Frank Doe (RFC®), CFP, MBA
(703) 272-7177
10560 Main Street, Suite 316
Fairfax, VA
Company
Frank & Darby Doe
Qualifications
Education: MBA
Years of Experience: 33
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Business Planning, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, Annuities

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Jackson Hewitt
(202) 588-1885
251 Florida Avenue
Washington, DC

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Ari Group Llc
(202) 723-5059
1731 7th St Nw
Washington, DC

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Charles Stough
1940 Duke St, Suite 200
Alexandria, VA
Company
Title: LPL Wealth Planner
Company: WealthPath LLC
Type
Investment Advisor Rep: Yes
Education
University of Oklahoma/MHR
University of Florida/BA
Years Experience
Years Experience: 7
Service
Pension for Highly Compensated Owners,Income for Life/ Preserve Principal,Alternative Investments,Retirement Planning,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Hourly Financial Planning Engagements,IRA, 401k, Roth IRA, QDRO Rollovers,Wealth Management,Annuities,Alternative Asset Class Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planni

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Mr. Vijay K. Khetarpal (RFC®), CFP, CHFC, CLU
(703) 356-4888
8607 Westwood Center Dr #300
Vienna, VA
Company
Integrity Financial Group, LLC
Qualifications
Education: B.A (Honors) Economics, St. Stephens College, DelhiAll India HS Humanities, Mayo College, Ajmer
Years of Experience: 27
Membership
IARFC, MDRT, FPA, SFSP, NAIFA
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Mr. Martin J. Beeson (RFC®), CEP, CSA
(866) 388-0110
2135 Defense Hwy Ste 6
Crofton, MD
Company
The Planning Companies
Qualifications
Years of Experience: 19
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Charitable Foundations, Asset Protection, BuySell

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Express Tax Svc
(202) 332-0400
1541 7th St NW
Washington, DC

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Multistate Tax Commission
(202) 624-8699
444 N Capitol St NW Ste 425
Washington, DC

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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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