Comments on: S-corp tax deductions on personal income ? http://www.whatcanideductonmytaxes.com/s-corp-tax-deductions-on-personal-income.php Personal income tax deductions explained. Mon, 07 Feb 2011 18:14:50 +0000 hourly 1 http://wordpress.org/?v=3.1 By: v b http://www.whatcanideductonmytaxes.com/s-corp-tax-deductions-on-personal-income.php/comment-page-1#comment-147 v b Tue, 08 Jun 2010 16:39:14 +0000 http://www.whatcanideductonmytaxes.com/s-corp-tax-deductions-on-personal-income.php#comment-147 1. The minimum salary is one that is commensurate with your work. $0 is not reasonable. $1000000 is not reasonable. There is no magic number as the amount is what you are worth if someone else hired you for the same amount of time. 2. Lack of profitability does not mean you can lower your salary. (If you want that, set up a partnership.) 3. You ability to deduct a loss is limited by your cost basis in the s-corp. 4. See #3. The 3 year rule applies to figuring out if you are really a business or not. 1. The minimum salary is one that is commensurate with your work. $0 is not reasonable. $1000000 is not reasonable. There is no magic number as the amount is what you are worth if someone else hired you for the same amount of time.

2. Lack of profitability does not mean you can lower your salary. (If you want that, set up a partnership.)

3. You ability to deduct a loss is limited by your cost basis in the s-corp.

4. See #3. The 3 year rule applies to figuring out if you are really a business or not.

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