Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I own an S-Corp. I showed a net loss of $7129 on last years

I own an S-Corp. I...
I own an S-Corp.
I showed a net loss of $7129 on last years tax return and have a carryover loss of $8187 form the previous years tax return.
My queation is this.
If I take a full time job on the books and apply these losses towards deductions or dependants, what will my annual salary have to be for me to take home $925 a week? The company is located in New York City but I am not a resident and they pay bi-monthly.
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 minutes by:
8/1/2012
Zhannaxena
Zhannaxena, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 42
Experience: I am a NYS CPA as well as a CIA, CRMA and Licensed Real Estate Agent.
Verified

Zhannaxena :

Hello, how are you?

Zhannaxena :

(as soon as you respond - we'll start reviewing your question)

Zhannaxena :

Before I can answer the question I need to know:

Zhannaxena :

1. Are you married, do you have children?

Zhannaxena :

2. Where are you a resident?

Zhannaxena :

3. Do you take an itemized or standard deduction annually? If itemized, how much?

Zhannaxena :

Let me know - thanks.

Customer:

I am divorced and have one child. My ex-wife and I alternate claiming her. The upcoming year isn't my turn.

Customer:

I am a resident of Nassau County.

Zhannaxena :

Hello

Zhannaxena :

Ah ok, so let me do the calculations then:

Zhannaxena :

So $7129 plus $8187 = $15,316 in operating losses

Zhannaxena :

are you the sole owner of this S corp? All these losses go to you?

Customer:

I don't know the answer to your third question. How would I find out? Can I look on my copy last years tax return? Corporate or personal ?

Zhannaxena :

oh I mean, do you run this business alone or with others?

Zhannaxena :

or are you a passive investor in the S corp?

Zhannaxena :

do you receive a K-1 at the end of the year?

Customer:

Yes, I am the sole owner. I would love to split the losses over the next 2 years if I take the new job.

Zhannaxena :

And another question, why is there a carryover loss? Did your accountant classify this as passive income or active income?

Zhannaxena :

Passive income means this is more of an investment for you.

Zhannaxena :

Active income means you actively participate in running this business.

Zhannaxena :

(are you having trouble with this chat?)

Customer:

I don't know. where on the tax return can I find out ???

Zhannaxena :

Ok, do you have the return with you? Do you see a Schedule E on your tax return?

Customer:

hold on.

Zhannaxena :

The reason this is important is because passive losses can only offset passive income. Active losses can offset ordinary income, like wages. I have a feeling that the reason you have a carryover is because it's a passive loss.

Zhannaxena :

Sure, take your time.

Customer:

I have an 1120S, 1125A, and schedule K-1

Zhannaxena :

Ok great, where on the K-1 does it show the loss - which box #?

Customer:

i also see CT-3S and CT-34-SH

Zhannaxena :

Yeah that's fine, those are NYS s-corp schedules

Zhannaxena :

I am more interested in the K-1 and where the loss appears, which box is it in?

Customer:

okay. On for K-1 (form 1120S) the loss is on line 1. Then again on K-1 (form CT-3-S) it's on line 11.

Customer:

Where are you located ???

Zhannaxena :

I am located in NYC. I live in Queens.

Zhannaxena :

Why?

Zhannaxena :

Line 1 - excellent, ordinary business loss.

Zhannaxena :

Ok, it should apply against ordinary business income then - thanks.

Zhannaxena :

Ok, let me do the calculation then.

Customer:

Nothing. I just like you : )

Zhannaxena :

Oh, well, thank you, XXXXX XXXXX it. :)

Zhannaxena :

ok, so here it is, the government is going to take about 25% via federal and NYS taxes

Zhannaxena :

You can make up to $79450

Zhannaxena :

Here is the math: $79,450 - $15316 = $64134

Zhannaxena :

$64,134 * 0.75 = $48,100

Zhannaxena :

$48,100/52 weeks = $925 per week

Zhannaxena :

(I am assuming you get paid 52 weeks per year)

Zhannaxena :

Does that answer your question?

Customer:

Sorry. I am confused.

Zhannaxena :

Hi, sure, what are you confused about>?

Zhannaxena :

Your annual salary should be $79450 in order to take home $925.

Zhannaxena :

(per week)

Customer:

So I my anual salary would have to be $79, 450 to take home $925 a week with my losses?

Zhannaxena :

This calculation takes into account your tax bracket, your NYC non-resident status and your losses (both years).

Zhannaxena :

yes, exactly

Customer:

They want to pay me around $55K.

Zhannaxena :

Ah ok, let me redo the calculation based on that.

Customer:

You number cannot be right.

Customer:

How many depandants do I put on the form when you first start a job?

Customer:

I was thinking I could safely put 3 or maybe even 4 !

Zhannaxena :

For someone who is single, put 1. But since you have the loss, you can put 3.

Zhannaxena :

So if you're making $55,000 per year, and take home $41,250 after taxes, your salary post-tax is $793 per year.

Zhannaxena :

However, since you have the loss.

Customer:

salary post??

Customer:

$793 per year ??

Zhannaxena :

Sorry phone call.

Zhannaxena :

no, no $793 per week.

Zhannaxena :

Ok, there are two ways to go about it.

Zhannaxena :

If you take 1 allowance on your W-4, you'll receive a refund at the end of the year.

Zhannaxena :

If you take 3-4 allowances on your W-4, you'll break even (approximately) at the end of the year.

Customer:

I want to try and come close to breaking even.

Zhannaxena :

So in the first circumstance, you'll get $793 every week in your paycheck. But at the end of the year, you'll receive a refund.

Zhannaxena :

Ok, let me do the breakeven calculation.

Zhannaxena :

Ok, so if you take 3 allowances, you'll be making $899 per week.

Zhannaxena :

$55,000 salary, take home 85% or $46,750. So your weekly salary (assuming 52 paychecks) is $899.

Customer:

Bi-monthly they pay.

Zhannaxena :

In that case its $1947 bi-monthly

Customer:

Okay, so if I propose an anual salary of $55,000 a year AND claim 3 dependants, my bi-monthy check will be appox. $975 per week take home? Roughly...Correct ???

Customer:

Can you email me your calcualtions?

Customer:

My email is :

Customer:

My name isXXXXX

Zhannaxena :

Hi Herby, your e-mail came back all XXXs, they don't allow the exchange of emails and phone numbers unfortunately.

Zhannaxena :

I got in trouble for that once.

Customer:

I am also looking for a new accountant so if you want to talk about my situation please feel free to call me anytime.

Zhannaxena :

Yes, $899 per week, correct.

Customer:

(XXX) XXX-XXXX

Zhannaxena :

Your phone number came back like this:



(XXX) XXX-XXXX


Customer:

five one six eight eight seven one two three four

Zhannaxena :

got it

Customer:

drop me a text and I will text you my email

Customer:

and $1947 divided by 2 comes to $973.50

Zhannaxena :

It's not by 2

Customer:

wouldn't this be my take home amount for a week? roughly of course

Zhannaxena :

remember 52 weeks per year - if you got paid every other week, that's 26 paychecks

Zhannaxena :

if you get paid twice a month, that's 24 paychecks

Zhannaxena :

so that's why it's not double the weekly, it's slightly more

Customer:

Okay Z. I gott get to Long Island. You have been a great help. I am going to pay the $30 now !

Zhannaxena
Zhannaxena, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 42
Experience: I am a NYS CPA as well as a CIA, CRMA and Licensed Real Estate Agent.
Verified
Zhannaxena and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Zhannaxena Your Own Question
Zhannaxena
Zhannaxena
Zhannaxena, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 42
42 Satisfied Customers
Experience: I am a NYS CPA as well as a CIA, CRMA and Licensed Real Estate Agent.

Zhannaxena is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Impact of tax changes on filing amended returns... Client
Impact of tax changes on filing amended returns... Client filed a 2016 tax return on time in 2017. If the tax laws change significantly, which laws apply when amended returns are filed... the tax laws… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,444 satisfied customers
If lease payments are being taken as a tax deduction can the
If lease payments are being taken as a tax deduction can the mileage method be used to account for other expenses? Or are you required to use actual expenses?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Form 886-A Deductible Home Mortgage Interest Taxpayer has
Form 886-A Deductible Home Mortgage Interest Taxpayer has $1,000,000 in Grandfathered debt. Line 9 Form 886-A - is this line amount after deducting the garandfathered debt… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I need a form to apply to have 10% of my SS check deducted.
I need a form to apply to have 10% of my SS check deducted … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,444 satisfied customers
Are the following items tax deductible with regards to an SBA loan?
Are the following items tax deductible with regards ***** ***** SBA loan ? 1. SBA guaranty fee 2. packaging fee 3. Environmental expense ( towards environmental assessment ) 4. Appraisal fee What docu… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Is the house or taxes deductible for him. How does it affect
Is the house or taxes deductible for him. How does it affect his taxes. How can the house be in both our names, without making me an equal partner.… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
31 satisfied customers
Form 1120, cash basis. If Taxes paid to IRS are deductible,
Form 1120, cash basis. If Taxes paid to IRS are deductible, are refunds for overpayment the equivalent of income?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
Can taxes paid in for a previous year be deducted in the
Can taxes paid in for a previous year be deducted in the current year? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I missed deducting something on my return this year for my
I missed deducting something on my return this year for my corp s , can include it on next years?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
You may recall that tax deductions are only deductible by
You may recall that tax deductions are only deductible by the legislative grace of Congress. After this lesson, you might have realized that Congress was pretty generous with the types of business exp… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,444 satisfied customers
I submitted my 2016 tax return plus a Form 5695, Residential
I submitted my 2016 tax return plus a Form 5695, Residential Energy Credit , in April 2017. That was 5 months ago and I have not received the $7722.00 refund or a status report. Is there any way to ex… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Can house maintenance and property taxes be deducted on form
Hello. Can house maintenance and property taxes be deducted on form 1041 for a house owned by decedent prior to the Executors selling it? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A Form 1065 partnership return is being prepared for a
A Form 1065 partnership return is being prepared for a partnership whose General Partner is a single member LLC. In the Analysis of Net Income (Loss) section at the top of page 5, is the LLC's portion… read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
Is it allowed to not include a deduction of my fed return
is it allowed to not include a deduction of my fed return that increases my tax on my city return?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
On 1120S form, in other deductions section, i see three
on 1120S form, in other deductions section, i see three options for meals and entainment; subject to 50% 80% and 100% limits. What are these limits?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
1045 and an amended tax return. 2015 tax return had a $ 248K
1045 and an amended tax return.2015 tax return had a $ 248K NOL. I prepared the 2015 tax return and a 1045 to carryback the loss back two years. All of the loss was used up on the 1045.In preparing th… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I got notice that my tax return forms have been received a
I got notice that my tax return forms have been received a month ago but the money still has not been direct deposited into my account? Is there anyway I can check on the progress ?… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
What are lines 15a & 15b on form 1040 for 2015 tax return? i
What are lines 15a & 15b on form 1040 for 2015 tax return? … read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
285 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x