S Corp loss Question - I'm paying no taxes?


M

Max

The first 6 months in 2003 I was an employee and received my W2, and I put
that down on my 1040. Now the last 6 months of 2003 I opened up an s-corp
and have a big loss due to all my start-up costs. Since I'm the only
employee of my s-corp, I've carried this loss over to my 1040.

NOW I pay no taxes and I get all my money that was taken out in the W2
refunded to me! Did I do something wrong??

My thoughts are the 1040 Schedule E should have reduced this, but I think I
filled out it right....

-Max
 
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P

Paul A Thomas

Max said:
The first 6 months in 2003 I was an employee and received my W2, and I put
that down on my 1040. Now the last 6 months of 2003 I opened up an s-corp
and have a big loss due to all my start-up costs. Since I'm the only
employee of my s-corp, I've carried this loss over to my 1040.

NOW I pay no taxes and I get all my money that was taken out in the W2
refunded to me! Did I do something wrong??
The only place that you might have a mistake, is if you don't have "basis"
in the "S" corporation losses.


My thoughts are the 1040 Schedule E should have reduced this, but I think I
filled out it right....

Otherwise, that's the impact of losses. They reduce your other income..
 

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