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Old 03-07-2010, 11:12 PM
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S corp - income consideration

Hi Gurus,
I have an S corp and have few shareholders. I opened a business checking account and used online Payroll to pay my share holders. The income for the S-corp is received via 1099-MISC. But all the income was deposited into the business checking and used as expense for payroll and taxes.
How will I report this income into the S Corp?
Thanks and regards.
A 2009 newbie S corp.


Last edited by advscorp09 : 03-07-2010 at 11:13 PM. Reason: Self correction


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Old 03-08-2010, 10:38 PM
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You would report as income all the amounts deposited into your Business checking account, (presumably this amount will be at least equal to the 1099-Misc amount reported).

Now against this income, you would deduct payroll paid to your shareholder along with payroll taxes paid and all reasonable, ordinary and necessary business expenses that were incurred to generate income related to this corporation.

But, an S Corporation is a special type of corporation and I would strongly consult a CPA or tax professional as tax professional may be able to save you considerable amounts in your tax liabilities!

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Old 03-08-2010, 11:18 PM
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Smile

Thanks and will consult near by CPA for this income to be appropriated with S-corp.
I have the full records with S-corp. The big question is that whether this same has to be reflected in 1040 (Individual report) or not. Best regards.



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