Article Date:
December 2017


Word Count:
730

 

 

Tax Savings Trap Crushes S Corporation Owner’s Expenses


Ronnie Craft owned 50 percent of an S corporation. Both he and the other owner took salaries of $50,000 a year from the S corporation.

 

The corporation adopted a resolution requiring Ronnie to pay for and supply his own office space and vehicles for use on behalf of the S corporation’s business. In other words, the corporation wanted Ronnie to incur employee business expenses while promoting and taking care of the corporation’s business, but the corporation was not going to reimburse Ronnie for those expenses.

 

Ronnie incurred $17,604 of employee business expenses, but instead of claiming them as ... Log in to view full article.

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