Posts Tagged ‘personal tax’

can you have your (own) corporation pay your truck payments & gas, then use the mileage on your personal taxs?

You own the corporation and use the truck payments and gas on the corporation for a tax deduction, then you also use the mileage on that same truck for your own personal tax deduction.

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S-corp tax deductions on personal income ?

Hi, I am trying to setup a small business in CA with 2 other partners and thinking of doing a S-corp. We will each put in some money say k in the company and have an equal split. Here are my questions:

1. Since we are officers in the company, are we required to pay a salary, I saw someone mentioned k is the minimum.

2. It’s very likely that the company won’t make enough profit to pay 3 x k. Are we allowed to take smaller salary?

3. Assuming we have a net loss for the first year, and I understand S-corp’s profit and loss will flow through to your personal tax income. Does it mean that I can deduct the loss from my income that I earned from my previous employer?

4. I heard someone said that we can deduct up to 3 years of your personal income. Is that true? i.e. if the new company lost k this year and assuming a equal split. Can I deduct the k from my tax return in 2008, 2007 and 2006?

Thanks!
-Mr. Beacon

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