New Corp electing S corp and personal capital gains
Here is my situation:
I started a newly formed Corporation on May 3rd 2012..I'm the sole owner/operator "employee".. I have not elected S corp status as of yet. In Feb 2012 I took out 80,000.00 from an inherited IRA and chose to not have any taxes taken out at that time.. I'm depositing 50,000.00 from this 80,000.00 inherited IRA into my new Companies checking account. I will definitely be using all of the 50,000.00 for start up costs before Dec. 31st 2012.. My business will not be making any profit at all for at least the first 12 months as it is/will be a very small electronics manufacturing Company and all money has to be used for prototyping new products only. I will also not be taking a salary from the business for the first year. My question is will 2012 be my first "short tax year" from May 3rd 2012 (the date I incorporated) through Dec 31st 2012? And will I be able to use the 50,000.00 invested for as a loss to offset my capital gains from taking out the $80,000.00 inherited IRA in Feb 2012? I'm a bit confused where the instructions for form 2553 mention having to file within 2 months and 15 days etc....