Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120796  
Subject: Re: yet another safe harbor question Date: 9/18/2003 10:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Said that we only had to withhold for personal income (?), the s-corp profit would be handled separatedly on our individual tax form and that tax liability could be paid at later. Does this sound right to ANYONE?

No, it's not right. As a major stockholder he is liable for his profits of S-corp as earned, not just at the end of the year, or next March when the accountant gets around to filing the 1120S (if she knows how). This is immaterial, however, because he's not withholding enough to meet the 90% of current year's tax safe harbor (including his S-corp profits), nor enough to meet the 110% of last year's tax safe harbor. If he thinks he can pay an estimate payment in January to cover it he would have to file form 2210 and Schedule AI to justify it, but that requires stating your income for each quarter which includes the S-corp profits each quarter, ergo--penalty. ed
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Disclaimer:
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.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement