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Solo w PC. Do I reimburse myself for all expenses paid?
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Date: May 18th, 2017 1:40 PM Author: bat-shit-crazy pea-brained codepig I'm a solo with a PC. My PC is paying me a salary. My PC also reimburses me for out of pocket expenses I pay with my personal credit card (postage, filing fees, etc.).
What about for other expenses I want my PC to deduct from the PC's taxes -- home office, mileage, utilities? Do I have have the PC reimburse me for the share of the home office, etc.? I'm totally confused how this works. |
Date: May 18th, 2017 1:42 PM Author: hairraiser reading party just s corp yourself and deduct everything.
for mileage use the irs $.55/mile way more than actual gas and oil changes. |
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Date: May 18th, 2017 1:44 PM Author: bat-shit-crazy pea-brained codepig I'm already an S corporation. This is my first year as a corporation. I'm not sure how this all works.
What does "deduct everything" mean -- from the PC's taxes? |
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Date: May 18th, 2017 2:05 PM Author: sapphire main people coffee pot You might want to look up how S Corps work, bro. It's a pass through. I assume you're a loligator. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33336819) |
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Date: May 18th, 2017 2:35 PM Author: bat-shit-crazy pea-brained codepig Loligator but got an A in corporations in law school, breh.
Wtf does pass-through mean?
I'm paying myself $30k a year and prob going to make $60-80k this year. At the end of the year I file a corporate return for the S-corp. Do the expenses get deducted on the S-corp's return?
Should I reimburse myself for them? |
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Date: May 18th, 2017 3:26 PM Author: Shaky Chapel ljl at an A in corporations. cot damn lawyers are the fucking worst (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337462) |
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Date: May 18th, 2017 7:55 PM Author: Racy newt shrine Make sure to set up a solo 401k at etrade (no cost). You can make a "profit sharing" contribution to the 401k directly from the business (capped at 25% of salary I believe). It's deducted on the 1120s as an expense. THIS IS NOT PAID TO YOU, IT GOES DIRECTLY TO YOUR 401K, MEANING NO PAYROLL TAXES ARE DEDUCTED AND YOU SAVE 15% OVER CONTRIBUTING THROUGH PAYROLL SALARY DEFERRALS. THIS PROFIT SHARING CONTRIBUTION IS IN ADDITION TO THE NORMAL $18K CAP. IT REDUCES YOUR MAGI, MEANING IT HELPS YOU GET UNDER THE CAPS FOR THE STUDENT LOAN INTEREST DEDUCTION AND LIMIT ON TRADITIONAL IRA CONTRIBUTIONS. BETWEEN THE PROFIT SHARING SOLO401K CONTRIBUTION, 18K SALARY DEFERRAL TO THE SOLO 401K, $5.5K TIRA CONTRIBUTION, AND DEDUCTING EXPENSES THROUGH THE ACCOUNTABLE PLAN, YOU CAN PAY ALMOST NO TAXES. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33339439) |
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Date: May 18th, 2017 9:15 PM Author: bat-shit-crazy pea-brained codepig tyty. what percentage of my gross/net do you think i should pay myself as a reasonable salary? if im only making 60k, 20k seems like a reasonable salary to me.
how much of a home office deduction is too much under the accountable plan?
doesnt the student loan interest deduction do me no good if im not itemizing my individual return? |
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Date: May 18th, 2017 2:06 PM Author: hairraiser reading party rent (if work from home), car (mileage per irs above), computer shit, cellphone/internet bill, suits, whatever. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33336827) |
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Date: May 18th, 2017 3:25 PM Author: bat-shit-crazy pea-brained codepig do i just reimburse myself each month for all this shit?
how does this all get accounted for when i do my corporate taxes? |
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Date: May 18th, 2017 3:38 PM Author: Racy newt shrine The keyword you're looking for is "accountable plan." The articles will explain exactly what you need to do. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337550) |
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Date: May 18th, 2017 3:50 PM Author: bat-shit-crazy pea-brained codepig I did find this. I get that I just keep a log and reimburse myself. But what happens to my corporate taxes? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337636) |
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Date: May 18th, 2017 3:51 PM Author: hairraiser reading party with an s corp you don't have corp taxes. just do a 1040. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337643) |
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Date: May 18th, 2017 3:52 PM Author: bat-shit-crazy pea-brained codepig the s-corp needs to file a return,Form 1120S. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337657) |
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Date: May 18th, 2017 3:55 PM Author: hairraiser reading party yeah that's it. so he doesn't need to do personal taxes then. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337688) |
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Date: May 18th, 2017 3:55 PM Author: bat-shit-crazy pea-brained codepig No offense but you're talking out of your ass ITT. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337694) |
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Date: May 18th, 2017 3:57 PM Author: hairraiser reading party i have a business and i deduct miles, internet and phone. i don't make money off that business so it's a nice loss to offset my salary. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337714) |
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Date: May 18th, 2017 3:59 PM Author: bat-shit-crazy pea-brained codepig you obviously have no familiarity with the "accountable plan" which is the crux of this thread (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337730) |
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Date: May 18th, 2017 4:00 PM Author: hairraiser reading party true but who pays attention to taxes before april 10? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337734) |
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Date: May 18th, 2017 4:03 PM Author: bat-shit-crazy pea-brained codepig you've obviously never run a business and paid quarterly taxes and kept accurate books. just stfu please. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337755) |
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Date: May 18th, 2017 5:33 PM Author: hairraiser reading party he's a solo he doesn't have payroll. besides adp/paychex does that shit. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33338522) |
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Date: May 18th, 2017 5:44 PM Author: 180 azn generally, responsible people with S-corps, as the 1120s filing due date is March 15 and quarterly estimated tax payments are required (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33338594) |
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Date: May 18th, 2017 3:53 PM Author: hairraiser reading party home to courthouse = 30 mile roundtrip.
take your caseload, multiply 5 roundtrips (avg case, say) per case before taxes.
i.e. 30 miles * 100 * 5 = 15,000 * .55 = about $9k deduction |
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Date: May 18th, 2017 3:55 PM Author: bat-shit-crazy pea-brained codepig I get that part. I mean do I have to itemize each category of expenses for an "accoutable plan" (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337690) |
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Date: May 18th, 2017 4:06 PM Author: concupiscible red new version if you're audited, yeah, you'll need to show the itemized list and how much was reimbursed to which owner (I'm assuming you're the only one)
you can do this pretty quickly in a spreadsheet though man |
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Date: May 18th, 2017 4:09 PM Author: bat-shit-crazy pea-brained codepig on the s-corp's tax form each category of expenses is listed separately? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337813) |
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Date: May 18th, 2017 5:26 PM Author: Racy newt shrine Just track all your expenses by category in an excel spreadsheet and put the category totals into turbotax. It will give you an 1120s corporate return and a k1 form showing the business gain or loss. The k1 is then used on your personal return.
If you don't want to fuck around with the accounting much,make the money you pay to yourself from the Corp throughout the year a COMBINED distribution and reimbursement of expenses. Later on at tax time when you figure out what the expenses you reimbursed to yourself were, you can figure out what the actual split between distribution and reimbursement was. Gives you some extra flexibility after the fact if you forgot about a bunch of miles you drove that are needed to keep you from owing taxes. |
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Date: May 18th, 2017 6:52 PM Author: bat-shit-crazy pea-brained codepig i actually signed up for xero. ive put my expenses in an excel spreadsheet and i'm putting them in xero too.
i see what you're saying but cant i just reimburse myself later for shit i forgot? |
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Date: May 18th, 2017 3:26 PM Author: irradiated crusty cumskin hire an acct (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337454) |
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Date: May 18th, 2017 3:39 PM Author: hairraiser reading party horrible advice. turbotax that sit. not like he has 10ks and shit. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337555) |
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Date: May 18th, 2017 3:41 PM Author: tripping national security agency gaming laptop (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337565) |
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Date: May 18th, 2017 3:42 PM Author: hairraiser reading party why won't it be? if you're audited they need to prove fraud. no receipts and intent cannot be inferred. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337570) |
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Date: May 18th, 2017 3:45 PM Author: tripping national security agency gaming laptop (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337589) |
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Date: May 18th, 2017 3:51 PM Author: bat-shit-crazy pea-brained codepig I don't need receipts for meals under $75, right?
What about $20 networking events and little crap like that? |
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Date: May 18th, 2017 4:07 PM Author: tripping national security agency gaming laptop (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337802) |
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Date: May 18th, 2017 7:59 PM Author: Thirsty stage karate Why wouldn't you? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33339456) |
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Date: May 18th, 2017 3:48 PM Author: Cerebral Rose Ladyboy Jap why don't you use a mac? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337611) |
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Date: May 18th, 2017 3:54 PM Author: Heady hunting ground (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337685) |
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Date: May 18th, 2017 3:54 PM Author: floppy center What can you deduct mileage for? Driving to see clients? And I assume the suit thing was a joke. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337681) |
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Date: May 18th, 2017 3:55 PM Author: hairraiser reading party yes
a debate can be made if you don't wear suits ever except for court that it's a uniform. |
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Date: May 18th, 2017 3:57 PM Author: floppy center "debate" as in you hope they don't audit you? (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337708) |
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Date: May 18th, 2017 3:58 PM Author: hairraiser reading party (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337720) |
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Date: May 18th, 2017 3:58 PM Author: hairraiser reading party (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337725) |
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Date: May 18th, 2017 5:45 PM Author: 180 azn (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33338605) |
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Date: May 18th, 2017 5:28 PM Author: Racy newt shrine Pretty sure there are already adverse rulings on that. You're a good poaster but know nothing about tax. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33338483) |
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Date: May 18th, 2017 5:35 PM Author: hairraiser reading party bro rule 11 contemplates changes in the law that ought to be. (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33338538) |
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Date: May 18th, 2017 6:52 PM Author: bat-shit-crazy pea-brained codepig (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33339034) |
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Date: May 18th, 2017 3:56 PM Author: bat-shit-crazy pea-brained codepig clients, potential clients, networking meetings, getting supplies, etc (http://www.autoadmit.com/thread.php?thread_id=3618628&forum_id=2#33337702) |