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Can my S Corporation pay my property taxes so that it can in turn deduct them on the Federal S Corp return? Would that allow me to deduct real estate taxes that might not otherwise be deducted because of the $10,000 SALT limitation?
I think the answer is NO because the corporation doesn't have an obligation in the first place to pay my property taxes. Other thoughts?
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No is the correct answer.
You join the millions of other taxpayers that are subject the the $10K SALT limit.
The more I know the more I don’t know.
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if you are in NY look at PTET (pass through entity tax) - optional - have to opt in each year. Might be more work than it is worth. www.tax.ny.gov/bus/ptet
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Many other states have a PTE tax, too. But you still can't have the S Corp deduct the shareholder's personal real estate tax.
The more I know the more I don’t know.
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A corporation can only deduct valid business expenses of the corporation on Federal 1120 or 1120S.....just my opinion....
