Tax deduction if a minority owner of an S corp?

Question

I want to set up an S corp where I am 49% owner, my wife is 51%. We will therefore be a minority corp which is an advantage for us. She does not work so the question is can I take any losses on the S corp and apply exclusively to my earnings (I have another job) ?

Thanks

Answer 1

If you file a joint return, both your share of the profits and your wife's share would pass through to your joint return.

Answer 2

The corporate (s-corp) losses pass through to the tax returns of the stockholders. Your wife will get a k-1 form for 51% of the loss and you will ket a k-1 for 49% of the loss. These get claimed on the Schedule E on your personal tax return. A few things pass through uniquely (depreciation) and are recorded elsewhere.

I hope that this helps.