Originally Posted by faithbygd
If my schedule c income was recieved for only 5 weeks of work, I'm assuming I couldn't apply mileage that was accrued throughout the year in lieu of income that was reported on the K1. From what it sounds like, I can apply my home office, business phone, work truck insurance to the schedule c but if I start appling milege that was driven to do the job on income from thr schedule k I would be in murky water. Would that be correct?
it depends;aslongas written partnership agreement address unreimbursed business expenses,then, you put them on sch E, UPE code or something . if there is no, then, the partnership takes the mileage deduction.
If s-corp, you ,as a shareholder employee who uses a personal vehicle owned by the S corp for business can submit a request for reimbursement to the corporation, based on documented business miles. If the corp reimburses you based on the standard mileage rate for business under the accountable plan. In this case, The S Corp cannont deduct mileage. It will deduct depreciation on the vehicle and the operating expenses. If the s corp did not reimburse the mileage costs, then, It goes on form 2106, which carries either to SchA (miscellaneous deductions subject to 2%) of 1040. So you put your employee business expenses, including mileage, on form 2106 and carry it to the Sch A of 1040. Or If the S-Corp has a non-accountable reimbursement plan , then, it is income to you or owner, and is reported in the W-2 income. you would then take your mileage on a 2106 on your personal return.
If the vehicle were owned by you, an employee, the corp could reimburse you for the business miles driven. and the reimbursement is not reportable as taxable income to you under accountable plan, so you can not deduct it on your 1040; If the S Corp owns the vehicle,the deduction to the S Corp is based on actual operating expenses. The corp is also limited by the business-use percentage of the vehicle.The corporation can, however, deduct all of the operating expenses of the vehicle without regard to the business-use percentage, if the personal-use percentage is treated as income to the employee. The corporation's deduction for the personal-use percentage should be treated as a compensation expense on w2 then you can deduct the expense on your 1040. Under the non-accountable plan, same as above
; as said, partnership income does NOT go on a sch C unless you are in a qualified joint venture with your spouse. It goes on sch E. The income then flows to sch SE. S-corp income is paid via W-2. Soc sec taxes are paid via the W-2, not a sch C.