| | S-Corp CPA Challenge
I am in military and have an S-Corp in Texas that puts on events. In 2014 we had one event in Texas and it lost plenty of money. We had revenue totaling $15k and expenses totaling over $22k. I am using TurboTax Business 2014 to get everything ready for a CPA to audit before I file (to save any money I can at this point). Fortunately, I kept fairly good records of receipts, expenses, and mileage. However, there is a set of questions below I do not know how to answer using TurboTax. Can you help fill in the blanks?
1. I paid speakers under $600 to speak at my conference, do they need 1099-Misc? If not, how do I classify the expense?
-- I currently have them classified at Legal/Professional fees
2. I purchased some audio/visual equipment (projectors, speakers etc.) on Amazon totaling over $3k. Do I have to depreciate this over time or can I deduct it all this year… as I have no profit.
3. I currently have this classified under supplies and have depreciated the computer expense.
4. I took out funds from main bank business bank account, but each time was for a specific business reason I needed cash for. How do I explain this, do I just need a log for why each withdraw was made, in case of an audit?
5. On this note, I took no distributions and did not have the income to pay myself a salary. Is this a problem? Should I find a way to re-classify a withdraw as salary instead of an business expense?
6. Half of my deductions are from my personal account. Should I write up a loan agreement with the business for these expenses or can I just deduct them as normal classifying it as equity to the company.
7. One of the larger withdraws was to refund me for a computer purchase I made on my personal credit card specifically for the business. The withdraw did not cover the total bill for the computer, so can I assume the remaining amount could be part of the #6 question loan?
8. I took several trips that were 100% business related in my personal leased car. How do I deduct this expense? I would rather take the GSA per diem for my food expenses during these trips. Each location was the max GSA per diem amount of $71/day. TurboTax is telling me to cut my total food expenses in half, do I need to do this if I am using per diem instead? The 100% option is telling me it more for "company picnic" type expenses.
9. The conference had a VIP dinner that I paid Panera bread around $500 to cater. I have the receipts but am not sure how to classify the expense. Would this be in the "company picnic" type area?
10. My joint-venture partner needed $1000.00 to pay his rent before the conference. I told him it would have to be classified outside our joint-venture as a “consulting fee.” I am doing a 1099-Misc on and sending it to him. Is this right? Per our agreement, we would only share in profits (if any) and not share losses, that was on me. I am the only person with shares to the S-Corp.
11. I have two missing receipts for items over $75. One at Office Depot and one at a hotel. I have the statements showing the expense. Will the IRS not allow me to deduct this?
Any help is much appreciated! Also, if you happen to know any references IRS publications to answers above, you and I will officially be friends.
-SSgt. Just-In Texas