Conundrum: I have a valid S corporation (elected in 2003).
I filed for an extension
, am tackling my personal
and S Corp taxes
and am trying to sort out how/where to claim business expenses
. I am
using TaxCut software
to do my personal taxes
. I am familiar with theIRS forms
that pertain to the S Corp (1120S, 4562, and K-1) that I also
need to file. I understand that once I complete the S Corp forms, that
will generate a number (by way of the K-1) that I then enter into my
Background: The Company began in 2003. The company had $0 revenues in
2004 but money was spent on supplies, equipment, professional services,
separate phone line, etc. I own all shares of the company. I work out
of my home office, which meets all IRS Home Office requirements. I also
have a full time (paying) job.
So what I donâ€™t understand is where these deductions
should be entered.
All amounts Iâ€™m claiming are entirely for the business. All equipment
purchased is used 95% or more for the business. Do I get Home Office
deductions since itâ€™s an S Corp? And if so, how and where are those
claimed? Do the expenses and equipment purchases get entered on the
1120S or on my 1040 (or schedule thereof)?
It seems like it should be straight forward enough once I understand
hoe to claim these things, but Iâ€™m stuck at this point and will very
much appreciate (and gladly compensate) the help. I will be able to
check email for the rest of this afternoon and tomorrow.
Very Best Regards,