s corp with overseas employees and office rental

[globalking1]

i have an s corp business  100 % ownership also i have some employee overseas working for my company , where do i add their wages and rent i pay overseas.

is this deductible as company expanses ? 

[Carl]

You really need to seek professional help with this, since this is obviously your first year dealing with this. Doing things wrong will be "VERY" costly with the IRS. Add to that the potential cost of doing things wrong with whatever foreign tax authority your employees may have to deal with too. It will make the cost of professional help seem like a pittance in comparison.

[Anonymous_ · Accepted solution]

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@globalking1 wrote:

is this deductible as company expanses ? 

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You can deduct ordinary and necessary expenses incurred by your business, including reasonable rent and employee compensation that is both reasonable and paid for services that are actually performed.

See https://www.irs.gov/pub/irs-pdf/p535.pdf

Note that, as already mentioned, you should seek professional guidance for your particular case, particularly since your S corporation return (1120-S) was due on March 16th (unless you filed an extension - Form 7004) and there are penalties for late filing.

See https://www.irs.gov/instructions/i1120s#idm139641016311168