topic Re: First Year S-Corp in Get your taxes done using TurboTax

First Year S-Corp

JVito — Mon, 27 Jan 2025 16:06:56 GMT

I have been using TurboTax online for my taxes for years. As a first-year S-corporation (one owner with ZERO income), I know that a S-corporation return must be filed. However, I use a percentage of my residence as a 'home office.' Can that percentage of home office expenses (i.e., utilities, maintenance, assessments, etc.) transcend to my personal return as an expense?

If so, what are the additional TurboTax products I should use?

Regards.

Re: First Year S-Corp

Shannon B1 — Mon, 27 Jan 2025 17:30:36 GMT

As an owner of a S-Corp, if you work for the S-Corp, you are considered an employee of the S-Corp.

Employees cannot deduct home office expenses as job-related costs.

The best solution is for the S-Corp to reimburse you for your home office expenses through an accountable plan. This is an internal document created and signed by a company officer that agrees to reimburse you, as an employee, for expenses you incur for the company, like your home office. Here is a link to more information about accountable plans.

You will need Turbo Tax Business to complete your S-Corp return. Here is a link to purchase it. Make sure to finish your S-Corp return before completing your personal return, because you need to include the information from your S-Corp K-1 in your personal return.

Re: First Year S-Corp

Mike9241 — Mon, 27 Jan 2025 17:33:31 GMT

see these articles for the proper way to handle HO expenses for an s-Corp. there are two options. 1) it pays you rent (may not be the best option because you would have to file schedule E and report the rent) or 2) you submit timely expense reports to the S-Copr that reimburses you.

https://accountants.intuit.com/articles/home-office-deductions-expenses/

https://accountants.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-an-accountable-plan-to-deduct-home-office-expenses/

https://moneydoneright.com/taxes/business-taxes/s-corporation-pay-rent-home-office/

since it would seem you were neither paid rent nor reimbursed for expenses you'll get no deduction for 2024 on the S-corp return

By the way even with no income you must file a 2024 S-Corp return. You'll need Tutbotax business.

A corporation or other entity must file Form 1120-S if (a) it
elected to be an S corporation by filing Form 2553, (b) the IRS
accepted the election, and (c) the election remains in effect.
After filing Form 2553, you should have received confirmation
that Form 2553 was accepted. If you didn't receive notification of
acceptance or nonacceptance of the election within 2 months of
filing Form 2553 (5 months if you checked box Q1 to ask for a
letter ruling), please follow up by calling 800-829-4933. Don't file
Form 1120-S for any tax year before the year the election takes
effect.