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I have a single member LLC taxed as an S Corp. I did not pay…

I have a single member...
I have a single member LLC taxed as an S Corp. I did not pay myself wages (I know now it was a mistake). I incurred business mileage in my personal vehicle (5667 miles) and business use of home expense as well as computer equipment that was purchased for the business, but was in my personal name. I have not included these expenses in my 1120S.Question: Can I itemize them on my personal taxes (Sch A - Unreimbursed employee expenses) even though I did not receive a W-2? I am listed as the President of the SCorp and actively work in the business, but net income on the SCorp was a loss.
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Answered in 13 minutes by:
3/15/2018
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
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Experience: 35 years tax experience, including four years at a Big 4 firm.
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If it was me, I would amend and file a W-2 from the company. I would also put in your personal out of pocket expended items for reimbursement/deduction at the S corp level.

I know today's the filing deadline, but you could file an extension and address these issues.

This is how I address these things for S owners who didn't report a wage. The SE tax you are looking at if you made any kind of income is well worth the effort to extend and report a wage.

If you choose not to go this route, your expenses are deductible (see TC Memo 1989-207 and TC Memo 1997-446). But you will lose the 2% itemized deduction floor, and you must itemize to see value.

Thanks for asking for me. Please rate my response, five stars is best, ***** ***** March 15th bonus would be appreciated. I'mCustomer

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,125
Experience: 35 years tax experience, including four years at a Big 4 firm.
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If you choose not to go this route, your expenses are deductible (see TC Memo 1989-207 and TC Memo 1997-446). But you will lose the 2% itemized deduction floor, and you must itemize to see value.

I have to correct this. These expenses are NOT deductible per those TC memo cites. This is because you are NOT technically an employee, and these would be employee business expenses.

Thanks for allowing me to post this correction.

Customer/p>
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Customer reply replied 5 months ago
How would you suggest that I address the state and federal taxes that should have been withheld and submitted during the year on the employee (as a corporation) ?

File and pay. You should be eligible for first time penalty abatement with IRS.

The key is the SE tax you will save, as well as the reduced risk of IRS scrutiny. You are coming forward and telling a story that could save thousands every year.

Customer/p>
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Customer reply replied 5 months ago
Is there a minimum you would suggest I pay myself?

It depends on your business size, profits, type of business and some other factors.

If you business was in its early stages, even a professional, CPA, JD, Dr, all could claim very low wages. Owner compensation is very much a facts and circumstances test.

To give you a number I would have to discuss these items, r5eview prior returns, and spend time as a professional. I can do that through our Premium Service.

If you want to do this today, time is precious, so my Offer will reflect that.

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If all you want is a base minimum, I suggest paying yourself the state unemployment minimum. In my state, NY, the wage base is $10,300 for 2017. That way the state will be satisfied, regardless of the other factors.

You can likely opt out of worker's compensation as an officer. That's available in my state as well.

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