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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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OTHER THAN LIVE 5 OF THE 1120S FORM. IS THERE ANY OTHER PLACE

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OTHER THAN LINE 5 OF THE 1120S FORM. IS THERE ANY OTHER PLACE TO ENTER A GRANT WHERE IT DOES NOT SHOW UP IN THE ORDINARY BUSINESS INCOME OR AWAY TO TAKE IT OFF SO IT DOES SHOW UP ON THE SCH K FORMS.

Hi and welcome to JustAnswer:

What is the grant for and why should it be excluded from income.
Customer: replied 4 years ago.

THE IS FOR THE DETROIT PUBLIC SCHOOL. TITLE 1 TUTORING 1 PROGRAM.


THE PROGRAM IN STILL ONGOING AND WILL END WHEN ALL MONEY HAS BEEN USED. THE SHARE HOLDER WILL NOT BE GETTING ANY OF THE MONEY.

Hi Julia -

The grant is taxable income to the corporation. The net income after expenses is taxable income to the shareholder. The corporation can pay wages to the shareholder for services provided and other operating expenses to reduce the taxable amounts.
MequonCPA and 3 other Tax Specialists are ready to help you
Customer: replied 4 years ago.

IF THIS AMOUNT IS CARRY TO 2013 AND THERE IS MONEY LEFT FOR 2014. THEY WOULD BE TAX AGAIN? ITS LIKE BEING DOUBLE TAX.

You would report the income in the year(s) you receive it. In later years you would only have expenses and would be reducing your cash.

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