ckevin
Level 3

Single return or married filing joint? 

Is the business an S-corp? Sch. C? Partnership?

Does the withdrawal create a basis issue?

First thing is to check your deductions. Remove Sec. 179 or add'l deprec. deductions.

Elect different depreciation method to reduce regular depreciation.

Anything expensed that could be capitalized and depreciated?

Are there any questionable expenses? Be very strict with them.

If a Sch. C then a 1099 won't help even if it was allowed. Won't even go in to whether allowed.

If an S-corp a 1099 could help. Supposed to be payroll but payroll likely not required if no net income. A 1099 for some reason? 

If a partnership then no 1099. Guaranteed payment to partner. That would reduce net income by the partnership % of ownership and go in to income at 100% of the guaranteed payment.

Main take away, yes, the EIC and/or CTC would be nice. But don't do anything wrong, don't cross a line to generate a refund. It's not good for you or the client.

0 Cheers