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EMPL. EXP. DEDUCTION DISALLOWED BY IRS DUE TO AMT
6/7/09 2:14 PM, Viewed by asker 6/8/09 10:15 AM
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Total Views: 592
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.
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Helpful Answer
6/7/09 3:56 PM
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
6/7/09 3:56 PM
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.
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6/7/09 4:55 PM
As Phoebe stated the Accountable Plan is critical
I salute all our current Military and our Veterans.
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Answer
6/7/09 11:50 PM
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?