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Best Answer Click here
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You moved income that was paid to the individual in their own SSN over to the SCorp return?
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Idiot Shareholder A contributed all of their Social Security Income into the S Corp, as a shareholder loan. The S Corp goes on it's merry way and does business and reflects this Loan on it's balance sheet and issues K-1's. Shareholder A still reports their Social Security Income on their tax return, along with any income/loss from the K-1 that comes from the S Corp.
Sounds perfectly normal to me. I have never ,met a S Corp that really functioned like a business.
Answers are easy. Questions are hard!
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@George4Tacks " I have never ,met a S Corp that really functioned like a business. "
Some of us are less OCD than others. Most of the S Corps I meet these days aren't corporations anyway, they're LLC's choosing to be treated that way. Whether a corporation or LLC, it's all a legal fiction, like characters in a novel. I have never met a Marvel Comics creation that really functioned as I would like. But we're all playing a game of make-believe. I believe I'll have another doughnut with my coffee now.
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You're not really allowed to do that (if it was paid to the individual, its not Corp income), but youve already done it ...so at this point enter the 1099NEC Income on the Sch C of the taxpayer then in Other Expenses deduct it out as Reported on 1120S XX-XXXXXXX
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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