Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 678 other followers

  • Blog Stats

    • 306,795 hits
  • Posts By Day

    September 2009
    M T W T F S S
     123456
    78910111213
    14151617181920
    21222324252627
    282930  
  • Subscribe

  • Special Pages

Bleeding Off Income

Posted by taxguru on September 27, 2009

Q:

Subject:  C Corp Question

Good Morning,

I am looking at forming a C Corp, based on your advice online. One thing I do not understand is how one bleeds off income at the end of the personal tax year (12/31) back to the corporation, to limit personal exposure to income tax. Can you explain that a little bit for me?  Also, if (as I anticipate to do) I form the C corp, are you available as a CPA for my company? And if so, at what cost?

Thanks for the information.

A:

The easiest way to bleed off income from your 1040 is to pay your corp for “Business Services” or “Management Services” and deduct it on the same schedule(s) where you are reporting your income (C, E, or F).

If all of your income is from a W-2, you will need to deduct the Services on Sch. A.

As you can see below, I am still not accepting new clients.

Good luck.  I hope this helps.

Kerry Kerstetter

 

TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!

 

Sorry, the comment form is closed at this time.

 
%d bloggers like this: