Posts Tagged ‘salary’
Invested Money in Small Business as Partner – Tax deductions possible?
Posted by admin in US Tax Questions on August 21st, 2010
I invested 3K in start-up money with 2 other guys plus spent another 4K in misc. such as travel costs, supplies, etc. and we haven’t taken a salary or any income and are actually barely breaking even. Can I get any tax benefits for my personal income tax by having invested in this business?
Thanks.
LLC is the entity. Will not be changing that. I also live 2 states away and will not be able to just go see a tax pro together with the 2 other partners. The solution will have to be individually solved for each of us. They both have multiple other businesses it is just not going to be us going to see the same personal accountant.
Thanks.
This is about my personal taxes, not the LLC which will be done by the company’s CPA. I will get a K-1 at the end of that process? I also don’t do my own taxes. I’m trying to figure out if a. I can take deductions and b. what I need to give to my accountant to get the deductions and c. what are the questions I should be asking my partners prior to doing my own personal taxes. So far it looks like I should be asking to see a Schedule K-1.
S-corp tax deductions on personal income ?
Posted by admin in US Tax Questions on June 8th, 2010
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