New S-Corp, No Employees, No Revenues, Few expenses
What is the name of your state? Colorado
Hey All,
Say that in June of 2005, - and this is strictly hypothetical of course - but say that my partner -- whom we'll call Joe -- and I began pooling resources for a new business venture which was a natural segue from the the two small sole proprietorships we each ran out of our homes.
Say that, in 2005 we invested...
$3500.00 - For industry specific Education & Classes and...
$3000.00 for tablet PCs & Custom Programming
And say that in 2006 we invested an additional...
$1200 for miscellaneous tools
$1200 for custom printing (cards, brochures, artwork)
$5000 for custom programming.
In August 2006 we formed a new Sub - S corp however it was the first of February 2007 before any transactions took place under the corporate name, and then only one revenue transaction for $300.00 and one expense in the form of $1200.00 for Errors & Omissions Insurance.
Say that, in the course of 2006, Joe was compelled to cash out his 401K, IRA's etc. while scraping by on only his wife's meager wages as a Special Education Teacher in the Local Public School system (meaning the cashed out funds were used to supplement her paltry income). Now, Joe is hoping to offset the taxes due against his cashed out retirement funds personally, with expenses/losses for the year in the coporation.
Is this remotely plausible - considering that at best the corporation might show total expenses in 2006 of $14,000 (assuming the coporation were to "BUY" the computers, tools artwork, cards brocures etc. from us as sole proprieters) with gross corporate "revenues" of $0.00 for the year?
What is the name of your state? Colorado
Hey All,
Say that in June of 2005, - and this is strictly hypothetical of course - but say that my partner -- whom we'll call Joe -- and I began pooling resources for a new business venture which was a natural segue from the the two small sole proprietorships we each ran out of our homes.
Say that, in 2005 we invested...
$3500.00 - For industry specific Education & Classes and...
$3000.00 for tablet PCs & Custom Programming
And say that in 2006 we invested an additional...
$1200 for miscellaneous tools
$1200 for custom printing (cards, brochures, artwork)
$5000 for custom programming.
In August 2006 we formed a new Sub - S corp however it was the first of February 2007 before any transactions took place under the corporate name, and then only one revenue transaction for $300.00 and one expense in the form of $1200.00 for Errors & Omissions Insurance.
Say that, in the course of 2006, Joe was compelled to cash out his 401K, IRA's etc. while scraping by on only his wife's meager wages as a Special Education Teacher in the Local Public School system (meaning the cashed out funds were used to supplement her paltry income). Now, Joe is hoping to offset the taxes due against his cashed out retirement funds personally, with expenses/losses for the year in the coporation.
Is this remotely plausible - considering that at best the corporation might show total expenses in 2006 of $14,000 (assuming the coporation were to "BUY" the computers, tools artwork, cards brocures etc. from us as sole proprieters) with gross corporate "revenues" of $0.00 for the year?
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