turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I paid significant C-Corp expenses out of pocket, am a minority shareholder (non-employee), and will not be reimbursed - How do I recognize/deduct these expenses on 1040?

The largest chunk of these expenses were to cover company legal fees; however, there were additional expenses related to misc business meetings as well as a few expenses tied to marketing the business to potential acquirers.  Schedule C doesn't seem to cover C-corporations, and I can't figure out where to put these expenses so that they become deductions to my taxable income.  Thanks in advance for your help. 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

I paid significant C-Corp expenses out of pocket, am a minority shareholder (non-employee), and will not be reimbursed - How do I recognize/deduct these expenses on 1040?

A C-Corp is a taxable entity and as such, is the only entity that can deduct it's expenses.  Essentially, you loaned them funds to cover their expenses.  You were not legally required to pay those expenses.

You can treat the expenses as an increase in your basis.  The expenses will then be recouped when you sell your investment in the C-Corp.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question