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Subject:  Re: Sub Chapter S Corp & DOG food deductions? Date:  5/18/2001  12:13 PM
Author:  ripwest Number:  51069 of 127617

Can the owner (100% stock) of a Sub Chapter S Corporation deduct dog food as a miscellaneous business expense?

If your dog is used as a watchdog to guard your equipment yard at night, you might be able to make a case for the deduction of dog food, otherwise, forget it.

Is the following true:

The difference between Business Income - Business Expenses can be declared as wages or re-invested in the company.

Personal expenses, such as personal auto miles, lawyer fees for a divorce, debt payments to visa for old/personal debt, non-business related food expenses, and dog food should be deducted from wages, AFTER federal income tax is paid.

I think there is something slightly out of kilter in the way that you are looking at this. If you take a salary, it will be included in the business expenses. Personal expenses will never be deducted from wages. They will appear as a non-deductible expense of the corporation. For instance, if you have business income of $10,000 and business expense of $8,000 [including wages], and personal expenses of $1,000 in your Sub S corp, you will report $2,000 income from the Sub S corp, in addition to whatever you took as salary.


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