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Msg ID: 2555204 I can still itemize deductions +0/-0     
Author:That GOMer
2/10/2019 1:12:07 PM

S corp, S corp, S corp.... two out of three lose money every year. One makes a very small profit. Varies each year as to who profits and who doesn't. Flow those losses through the taxable income, and voila! Large corporations do it all the time.

Learn the code and play to win.



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Msg ID: 2555236 I can still itemize deductions +1/-0     
Author:I know
2/10/2019 4:06:39 PM

Reply to: 2555204

Only problem is the deductions I used to itemize were taken away.



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Msg ID: 2555238 I can still itemize deductions +7/-3     
Author:No problem
2/10/2019 5:01:15 PM

Reply to: 2555236

They were eliminated and replaced by the $24.4K Standard Deduction, twice as much as before, so you don't need to itemize. Eazy Peazy. MAGA, baby!

If you were itemizing more than $24K, you are doing very well and shouldn't be whining.



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Msg ID: 2555239 I can still itemize deductions +4/-0     
Author:quit trying to
2/10/2019 5:40:16 PM

Reply to: 2555238

bring facts into the conversation.  This bunch of clowns thinks that a big refund check means low taxes.



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Msg ID: 2555244 I can still itemize deductions +2/-5     
Author:That GOMer back at ya snoflake
2/10/2019 6:06:41 PM

Reply to: 2555239

Yes, a big refund check is a good indicator of a reduction in tax liability. Your employer takes out taxes based on your W-4 form. If you fill it out correctly (as the instructions guide you), then at the end of the year your deductions are calculated according to the itemized deductions or standard deduction according to prevailing tax laws .... you get a lot back ... . That old story of loaning the money to the government is actually correct. I see it as my contribution, allowing them to invest and gain throughout the year with my help.

Now, back to the S-Corporations .... even more deductions, because each one is a entity of it's own. 



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Msg ID: 2555251 I can still itemize deductions +15/-1     
Author:no,
2/10/2019 6:36:39 PM

Reply to: 2555244

a big refund check means you overpaid by a lot. 

The W-4 is rarely filled out correctly since most people think that they are limited to the number of dependents that they actually have.  In fact, you can claim as many as necessary to balance your withholding to your actual estimated tax liability.

Bottom line..big refund, you're doing it wrong.  Has nothing to do with your actual tax rate.



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Msg ID: 2555311 I can still itemize deductions +0/-0     
Author:That is a fact only if
2/11/2019 9:12:31 AM

Reply to: 2555239

you are married and filing jointly. Everybody else: $12,000.



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Msg ID: 2555313 I can still itemize deductions +0/-0     
Author:Anonymous
2/11/2019 9:17:53 AM

Reply to: 2555311

Which is also twice as much as before.



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Msg ID: 2555340 I can still itemize deductions +0/-0     
Author:How about that.
2/11/2019 11:42:25 AM

Reply to: 2555313

We finally found someone that's good at math.



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Msg ID: 2555354 I can still itemize deductions +0/-3     
Author:MAGA Supporter
2/11/2019 2:00:27 PM

Reply to: 2555340

I see many are getting a bigger refund this year and i’ll Adjust my W4 Form. I like to owe the gobment a couple of hundred that I will pay April 15th or whenever the tax day is for the year.   



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Msg ID: 2555682 I can still itemize deductions +0/-0     
Author:Simply comply
2/13/2019 3:32:28 PM

Reply to: 2555236

Go to work, pay your taxes, don't complain, drink up and all will be well says our leader.



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Msg ID: 2555603 I can still itemize deductions +0/-0     
Author:Da Tax Man
2/13/2019 12:34:58 AM

Reply to: 2555204

Let me make sure I'm reading this correctly. You are "still itemzing deeductions" through an S corp? 

Does that mean your tax strategy is to turn your employment into an S Corp? 

I can only assume you are a helicopter pilot, so you are most likely receiving wages and a W-2. What business does your S-Corp do? Businesses don't earn wages from their employer. 

You are a contractor, and not an employee?, Alright now were talking. So S-Corp means a Corporation that elected flow through treatment. That means you have to Incorporate, which means file articles of incorporation with your state. Judging by your post, you don't know how to do that so you need a lawyer. There goes any tax savings you thought you had. Annual business license fees, accounting fees, etc. 

If you are a sole owner S-Corp you are required to pay yourself a "reasonable wage".  Your wages are going to be subject to payroll taxes. You are also going to have to file quarterly payroll reports which I assume you don't know how to do so there goes some more accounting fees. Reasonable wages also means that if the IRS determines you lowered your wages to reduce your payroll tax liability that can recharacterize your distributions as wages and also subject you to a penalty.

Assuming you managed to do all this, like you said you would have generated a loss because it was a stupid idea. You elected flow through treatment so the S-Corp doesn't pay taxes, you pay them personally. Trouble is that the loss was passed through to you as passive loss. Your losses are going to be limitted to passive income, and they will not be available untill you produce a profit in the activity. 

 



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