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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121341  
Subject: Re: Leaving money in S Cospr at end of year Date: 5/24/2010 8:00 PM
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After toting up your net profit (income less deductible expenses), it doesn't matter what you do with the profits. You will pay taxes on them personally via the K-1 the corporation gives to you.

I think the implied question is "What do I do when I have a huge net loss next year? I have a bunch of income this year which is giving me a nice net profit this year, but I expect I'll have big expenses next year".

And I *think* the answer is a "loss carryback" which winds up with doing a revised tax form for this year to reduce this years income. BUT I'd look for an answer from an expert.
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