how to show investment into my company on my personal tax return?

Question

I need to show an expense on my personal taxes: $5k investment into my S Corporation, but do not know where in my tax return this should be displayed. (BTW, the S Corp made has no revenue yet). I am filing the S Corp as a Schedule C and i'm using turbo tax business version to file the taxes.

Answer 1

You should maintain documentary evidence sufficient to prove your investment since this is what constitutes your initial basis in the corporation's stock. It is not currently deductible. However, if the S corporation has sustained a loss (which may be unlikely if you have not actually begun business), then you can deduct that loss on your personal return up to the amount of your basis.

Income or loss from an S corporation is not reported on Schedule C. The S corporation should issue you a K-1 showing your share of its income or loss, and that information should be entered on Schedule E of your Form 1040.

Consult a tax advisor for more information.

Answer 2

This is an investment, not an expense. You made a capital contribution as a shareholder of an S-Corp. You should have received a Form K-1 showing your $5,000 contribution. This is included in your basis in the corp. Any future losses in the corp. will be deductible on your personal tax return as long as you have basis.

Answer 3

you have overstated his federal earnings tax bill via 30,000. As 35% is merely the impressive marginal fee - for the 1st 372,950 he honestly pays a decrease fee. yet he might little doubt argue that he additionally pays taxes on gas and alcohol and another luxuries. nevertheless it incredibly is confusing to work out that coming to a greater 3.2 million. for sure yet lower back Hannity replaced into merely mendacity his head off.

Answer 4

You don't - it's not deductible.