Thank you Tagteam for paging level15 users who prompty answered my question.
@Rick19744 and @Mike9241 two follow up questions.
1) We both deducted the following expenses on our 1120S for 2022.
a. Employer payroll taxes on 2022Q4 salaries that were sent to IRS in 2023Q1
b. Exepnses paid by credit card in 2022 Dec. But the credit card was paid in 2023 Jan
I showed the above as liabilities on Schedule L for 2022. My friend did not.
Based on your comment above, I assume both of us are right. Can you confirm?
2) How should withheld amounts be treated?
a. Employee 401k deferrals
b. Withheld Income tax and withheld FICA
Obviously, neither of us claim these as epenses but I show them as liabilities on my Schedule L. My friend does not.
Again, who is right?
