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Do you have a consolidated tax return for company A & B, or does each company have a separate return?
If each company has a separate return, what you are doing makes sense. You're not deducting the expense twice, because you are also claiming it as income.
So A has a management expense, and b picks that up as income. B spent that money on salaries, so B deducts it. I'm not sure why your tax preparer said you cannot do this.
You could not do this if you didn't claim the amount as income in B
Yes both companies have separate tax ID # XXX separate returns are being filed I am showing the management fee as income and its coming out of th company b in payroll expense
What you are doing is correct, I don't know why the preparer is telling you that you cannot do it.
can i send you my 2007 p/l stmt to look at
This is posted online, so I would be uncomfortable doing that due to your privacy
If you remove your company name from it, you can attach it and I can take a look
Hello, are you going to send the file?
Im sorry i got pulled away how can i send the docs