526
dq7dFAu6Cr3QVhacfA8pyY
EMPL. EXP. DEDUCTION DISALLOWED BY IRS DUE TO AMT
06/07/09 2:14pm PDT, Viewed by asker 06/08/09 10:15am PDT
Total Views: 600
Total Views: 600
Is there any way that expenses incurred by an S-corp employee subject to AMT who provides several pickups as part of the employment agreement to do so without additional compensation be deducted other than on Sch. A ? IRS disallowed deduction.
Best Answer - Chosen by the Community
Rating + 6
Helpful Answer
06/07/09 3:56pm PDT
No way to fix it retroactively. On a go-forward basis, the S-corp could reimburse pursuant to an accountable plan. Otherwise, you're stuck with Schedule A.
Hey, we get sig files now! Cool - I wonder what I'll put here? Ah, I know: RTFM.
All Replies: Answers (3)
Comments (1)
Rating + 6
Answer
06/07/09 3:56pm PDT
No way to fix it retroactively. On a go-forward basis, the S-corp could reimburse pursuant to an accountable plan. Otherwise, you're stuck with Schedule A.
Hey, we get sig files now! Cool - I wonder what I'll put here? Ah, I know: RTFM.
Rating 0
Answer
06/07/09 4:55pm PDT
As Phoebe stated the Accountable Plan is critical
I salute all our current Military and our Veterans.
Rating 0
Answer
06/07/09 11:50pm PDT
Does the s-corp employee receive a K-1 along with the W2?
Comment
Employee is not a stockholder but previously had own Indep. Contr. business. Continues to use his 5 trucks and equipment for jobs as employee but also did follow-up work for same customers as are now corp's for work he did in previous year without additional compensation and few independent minor jobs for which he was paid directly. Originally deducted truck expenses on Sch. C which IRS completely denied due to inability to segregate driving purposes for corp as employee vs. ind. contr. to same job locations.
Shouldn't they at least allow deduction to extent of income?