How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6178
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

Have a nyc s corporation which generated a large capital

Customer Question

have a nyc s corporation which generated a large capital gains . Had to pay large estimated tax payments . Can these be deducted off my Federal S Corporation return?
Submitted: 9 months ago.
Category: Tax
Customer: replied 9 months ago.
these were large NYC estimated tax payment for the capital gains
Expert:  Stephen G. replied 9 months ago.

No. As I'm sure you know all S-Corp income taxes are passed through to you personally. You will get a credit for those taxes on your NYC personal income tax return and you will be able to deduct the payments made in 2015 as an Itemized deduction on your 2015 personal federal income tax return.

Customer: replied 9 months ago.
These were estimated taxes that the corporation for the NYC general corporation return related to the capital gains
Customer: replied 9 months ago.
these estimated taxes related to the sale of a section 1231 asset which the state of nyc corporation return assesses a tax liability
to i beleive
Customer: replied 9 months ago.
This was on the NYC General Corporation return
Expert:  Stephen G. replied 9 months ago.

OK, you are talking about the NYC Corporate tax that treats S-Corps like regular corporation for NYC tax purposes.

So, yes they (NYC corporate estimated payments made by the S-Corp.) would be deductible as an expense on your 1120-S.

Expert:  Stephen G. replied 9 months ago.

Just checking in...................

I see that you have had a chance to review my response, but I don't see any follow-up questions?

If you do not have any additional questions, I would appreciate it if you would take a minute to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.