Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.