Q:

Subject: S Corp Advice

Mr. Kerry Kerstetter

 I am writing because I need a little bit of advice/consultation.  Me and my wife are still working to support ourselves.  We have file and received our S Corp with State of Nevada.  Also received our FEIN with the IRS.  We trade stocks on our spare time.  We filed for this S Corp. to cover our rearends for tax implications if whenever we would have any gains (even so small) when we trade.  We have invested as stocks to the corp. some of our funds (Approx. $10,000) and bought a company car (paid in full).  Probably others like lodging and transportation, lap top to support our business, among others.  With all of this investments as company stocks, do we file as a S Corp on 1120 or use the 1040 on out joint return?  BTW, we are still very ignorant on these taxes thing.  But are willing to learn.  We know, we will have to consult and file with our local tax consultant.  We just like to make sure that we are on the right path and if would be willing to share some of your wisdom.  Also, do have something that what we can claim and what can’t for tax implications?  Thank you very much for your time and wisdom.

 
A:

Setting up an S corp without knowing what that entailed was your first very big mistake.  Don't make things any worse by continuing to try to handle tax matters without the assistance of a professional tax advisor.  Cruising the web, searching for info is no substitute for the services of an experienced tax professional who can ask you the right questions.

There are far too many options to consider and possible scenarios that can be used to achieve your goals for me to even begin giving you specific advice via this medium.

You will need to work directly with an experienced tax pro who can analyze your unique circumstances. I wish I could help; but I already have too many clients to take care of properly; so we are still trimming back on the difficult clients and are not accepting any new ones at this time. 

Unfortunately, we don't have anyone specific to whom we could refer you. I did recently post some names and links for some like-minded tax pros around the country.

If you haven't already done so, you should check out my tips on how to select the right tax preparer for you.

I wish I could be of more assistance; and I wish you the best of luck.  

Kerry Kerstetter

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 1/02/2007 08:05:00 PM Send this post: