This information is general in nature and does not reflect all the details of your situation.

Congratulation on being a successful business owner. I strongly encourage you to sit down with a tax professional to discuss all the pertinent details to your tax situation.

S-Corporation
Form 1120S Income Tax for A S Corporation
Form K-1 Attachment

Form 1040 Individual Income Tax Return

S Corporations are what we call pass through entities. The income, expenses and deductions are passed through to each shareholder. That information is passed through to each shareholder on a form K-1.

The K-1 tells each shareholder how and where to put the income, expense or deductions onto their individual tax returns.

Use the links below for more information.

2005 Form 1120S http://www.irs.gov/pub/irs-pdf/f1120s.pdf

2005 Instruction 1120-S http://www.irs.gov/pub/irs-pdf/i1120s.pdf

I should also point out that a reasonable salary should be issued to you by each S Corporation each year. You should end up with two W-2's and two K-1's every year.

The K-1's will direct you as to where on your individual form 1040 tax return, to put the various incomes, expenses, and deductions. I expect you will also have passive income or losses that will be reported on a 1040 Schedule E.

You will need to have the S Corporation returned completed before you can accurately prepare your individual return.
The deadline for the S Corporation return is March 15 2006. The due for the individual return is Aprill 17 2006.

I hope this is helpful to you.gbigsby38723.9261861458