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Subject:  Re: Sub Chapter S Corp & DOG food deductions? Date:  5/18/2001  1:30 PM
Author:  pcguys Number:  51071 of 127613

"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."

Thanks for the reply.

Why would personal expenses ever show up for the corporation (deductable or not)?

If $8,000 of the expenses included $5,000 of wages, shouldn't the $1,000 in personal dog food expenses be invisible to the corp? Wouldn't it just come out of wages, at the personal level?

Many thanks for your thoughts on this.


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