Hello All,

I need help please...... I have a new Client that is a 2 person C Corp  1120  with subcontractors that will all get 1099-Misc.   

 They  2 owners did not start payroll until September.  I know I can deduct the W2 Salary as a business expense, but what about the Draws they took the rest of the year. 

I am seeing that cannot be a tax deduction unless they are on Payroll?       Thank you in advance,

Sharon