@TexasAubs wrote:
One additional question on deductions, Now that it's an S-corp would you no longer write off home office or your vehicle expenses? Thanks,
Correct. You should have paid yourself a fair market wage (considering the amount of work you did for the corporation) that was subject to employment taxes and withholding, and reported on a W-2. Any additional profit can only pass through to you after you have paid yourself a fair market wage. Then, as a W-2 employee, you can't deduct home office expenses or vehicle expenses on your personal tax return.
However, the S-corp can reimburse you (or any other employee) tax-free for legitimate business expenses, including use of a personal vehicle for business, if the business follows an accountable plan. The business can then deduct the expenses. For more information, see IRS publications 463 and 535.
https://www.irs.gov/forms-pubs/about-publication-535
https://www.irs.gov/forms-pubs/about-publication-463
It will be tough to prove home office expenses under an accountable plan, but vehicle expenses should be pretty easy to prove, provided you kept adequate records of vehicle use.
