• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

federal tax paid last year is deductable in form 1120?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

zebian

Junior Member
What is the name of your state? WA

I have C corporation doing form 1120 for 2006.
Last year this corporation paid $5300 in federal taxes when 2005 taxes were done. Is this $5300 considered as deduction for 2006 corporate tax calculation?

In corporation account the $5300 is an expense item for 2006. the corporation did not file or pay any quarterly taxes.
 


LdiJ

Senior Member
What is the name of your state? WA

I have C corporation doing form 1120 for 2006.
Last year this corporation paid $5300 in federal taxes when 2005 taxes were done. Is this $5300 considered as deduction for 2006 corporate tax calculation?

In corporation account the $5300 is an expense item for 2006. the corporation did not file or pay any quarterly taxes.
If the 5300.00 was for regular income tax, then no, its not a deduction for 2006. If the 5300.00 (or any part of it) was for trust fund taxes (withholding, employer taxes etc.) then it would be deductible.

Why do you have a C corp rather than an S corp?
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top