title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, September 27, 2009
 
Bleeding Off Income



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!

 


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 9/27/2009 06:26:00 PM Send this post:

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