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Old 07-31-2010, 05:58 PM
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Join Date: Jul 2010
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Question about Travel expense and income tax

Guys, I am doing the tax return for 2008 and 2009, Here is the situation:
The company is a C corp in CA. the first year 2008, there is a NOL of $16594, and salary and compensation is $0
2009, there is a profit of $8000 without salary and compensation being involved. The shareholder spend whole year oversea, so he is eligible for form 2555, and not paying federal income, but since the company is located in CA, he will still be eligible for CA personal income? He want to know what is the best option for him to either start paying himself salary to write off the company profit or using NOL from 2008 and remain unpaid by the corporation? The company has not yet filled for W2 and W3, and I assume there might be an penalty if he start paying himself salary due to late filling? For year 2010, the company should expect to make about around $10,000 in profit.

Guys, here is another situation. The owner's tax home is located oversea. He flew to Turkey for an exhibition hosted by his company, the next exhibition is in Germany and a month apart. So instead of the fly back home, he went backpacking and go from Turkey to Germany. However, the exhibition was canceled a week before it start and he has to waited another month for the next one which happen again is in Germany. He continued his trip and travel to other countries in Europe, The whole journey is 65 days, which part of the trip is tax deductible?

Thanks much!



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