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S Corp Self employment tax
10/13/08 10:06 AM, Viewed by asker 10/22/08 10:40 AM
Total Views: 1,358
Total Views: 1,358
Taxpayer has suspended loss from S Corp due to basis limitation.
THe basis limitation has been rectified and taxpayer has substantial basis now.
The income less the suspended loss carryover are reflected properly for income tax purposes.
What is the impact of the suspended loss carryover that is being used for SELF Employment Tax purposes
All Replies: Answers (2)
Rating + 1
Answer
10/13/08 10:16 AM
It would have no effect on SE tax....S Corp income is not SE income
Rating 0
Answer
10/21/08 5:36 PM
There should be no impact. A S-corp should not be paying salaries to the owner if this creates a loss position.
