Confused S Corp owner
Subject: Filling my s-corp and 1040 returns together
I found your email via an article you wrote on http://www.taxguru.org/corps/scorp.htm. If you don't mind I would like to ask you if it is possible for me to include the money I spent or invested in my s-corp on my 1040 taxes form that I will be filling from my regular employment. I have a regular job where I work 40 hours a week and I have my S-corp that I am investing in with my personal money from work. I am still working on my business and hence have not generated any revenue in my business.
Thanks, I appeciate your time and answers.
You need to be working with a professional tax advisor before you do anything else because you have very obviously gotten in over your head by setting up an S corp without having a clue as to how it works.
Just from the items you mentioned, there are several misconceptions you have, and I'm sure you have dozens more that you didn't mention.
Money you invest into the S corp isn't a deductible item. However, if there is a net operating loss inside the corp that can be passed through to your 1040, you may be able to have some offset to your W-2 income.
Before you go any further, you most definitely need to work with an experienced professional tax advisor to see that your S corp tax return is prepared properly and then that your 1040 is also prepared correctly. You are guaranteed to get yourself into serious trouble if you continue to try to muddle through these things on your own, if you haven't already.
At this late date, you should be filing an extension for your 2008 1040 in order to give yourself enough time to get things done properly.
Thank you for the advice. I will contact a tax advisor. It's for a website that I created and the only monies or funds that I have spent are $1000.00 and my monthly hosting account which is $10.00 per month.