Where are expenses to an India Foreign Contractor entered for S-Corp Business Taxes

[TXMedRev]

I have contracted 2 India companies and 1 individual from India to work with my US based S-Corp business. I wire their payments to them monthly as US $'s.   Where are these payments (expenses) I've made to them documented on my S-Corp Business Taxes?

[DaveF1006]

Depending on the scope of your business relationship, you can enter these expenses in two places.

• Go to Business expenses>other common business expenses. If none of the expenses fall under each of these categories, you may go to:
• All other expenses at the bottom of the page and list the expenses there.

[pk]

@TXMedRev , generally agreeing with my colleague @DaveF1006 , for purposes of  form 1120-S there is no distinction  between payments made ( for services ) to a domestic  and/or foreign person/entity. 

These are  all reported as part of Cost of Goods ( COGS) -- form 1125-A  I  am assuming here that  you are  paying for a product/ service  that is part of what you provide to your customer(s) in the USA.

Please  consider reading through the instructions for forms 1120-S and  1125-A.

Is there more I can do for you ?

[TXMedRev]

Hi PK,

This is for services for Healthcare billing.  So there is no product or inventory.  So I don't think Form 1120-A is applicable here.  Thoughts?  

[pk]

@TXMedRev , granted it is not a  "product " as such . However , if you look at your service as a product, then the coding etc. for the billing is the product of labor  and thus can be  expensed as labor for producing the service/deliverable "product".  Thats the nearest I can come to.

Hope this helps 

pk