Where can I find a comprehensive list of all possible tax deductions for a sole proprietor S corporation?
Posted on April 27, 2009 by admin
gokesemail asked:
As the sole proprietor my corporation is finally growing but I know I will owe enormous taxes if I dont take advantage of deductions available to S corporations. I would appreciate any suggestions. Thank you.
As the sole proprietor my corporation is finally growing but I know I will owe enormous taxes if I dont take advantage of deductions available to S corporations. I would appreciate any suggestions. Thank you.
Sounds like you are actually a sole stockholder of a S corporation. And it sounds like you need the help of a good tax planner. The answer to your question is not a simple one, because any expense of the corporation is deductible, but the way depreciation is calculated, and the retirement plan type you use can help reduce your taxes without affecting your cash flow. Also, one of the major factors will be the type of accounting method you are using for tax purposes–cash or accrual.
Just remember to keep supporting documents of all transactions, document annual stockholder meeting(even if you are the single stockholder), and not to mix personal money with the corporation funds, otherwise the corporation veil can be pierced.