If the business is a c-corp that will work.
So, sorry ... don't shoot the messenger here, but if the business is an S-Corp, an LLC
, a partnership
or a sole proprietorship (where there the business is a pass through,and flows directly to your personal tax return
, the IRS
wont's allow that).
In that situation, you're just paying yourself.
Now, if the business is a C-Corporation, or a Trust, that pays it's own taxes
(at C-Corp, or Trust, tax rates
respectively, on their own return) thne it will work ... because you have two different taxable entities there... ((1) you, on your Married Filing Jointly
return and (2) the C-Corp on its Corporation tax return).
But, again, if your business is a pass-through
entity such as a sole proprietorship, an S-Corp, an LLC or a partnership (where the profit or loss is not taxed at the business level, but rather flows through to line 12 - business income
or loss - of your personal tax return, you would be effectively paying yourself without taxing the income.
Hope this helps
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