The math I worked out in my head was that I should withhold/deposit a bit less income tax on payroll since I have startup/section 179 deductions coming up, but pay FICA taxes normally (since I'm required to pay it on all my wages). However the problem with that is that I'd be paying FICA on my expenses. Businesses that are already running don't pay any tax at all on expenses since when the money is spent, it doesn't go through payroll.
However an accountant said I'd be A-OK with FICA and won't have to pay it on anything, and that's when my tax basis came up.
Am I correct to assume that startup expenses/capital assets purchased before the business starts is added to your tax basis (owner's equity I guess?), and when payroll is run in the first year or so, I'm basically going to file some zeroed 941 returns until my profits exceed my startup expenses? That's kind of what the accountant was saying but I want to make sure.
PS: I'm a one-person S-Corp and I'm also aware of the section 179 and startup deduction limits.
However an accountant said I'd be A-OK with FICA and won't have to pay it on anything, and that's when my tax basis came up.
Am I correct to assume that startup expenses/capital assets purchased before the business starts is added to your tax basis (owner's equity I guess?), and when payroll is run in the first year or so, I'm basically going to file some zeroed 941 returns until my profits exceed my startup expenses? That's kind of what the accountant was saying but I want to make sure.
PS: I'm a one-person S-Corp and I'm also aware of the section 179 and startup deduction limits.