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It is the first year of SCorp, it is possible to get 1099 MISC as a compensation to be on Schedule C? and have deduction expenses on the Schedule C?
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Salary goes on a W-2, not a 1099-MISC.
There should not be a Schedule C.
Any expenses should have been (1) paid they corporation (so the deduction would be on corporate return) or (2) paid by the shareholder then reimbursed under an Accountable Plan (so the deduction would be on the corporate return). Other possibilities is that shareholder paid the expense and it is treated as a capital contribution or loan.
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Salary goes on a W-2, not a 1099-MISC.
There should not be a Schedule C.
Any expenses should have been (1) paid they corporation (so the deduction would be on corporate return) or (2) paid by the shareholder then reimbursed under an Accountable Plan (so the deduction would be on the corporate return). Other possibilities is that shareholder paid the expense and it is treated as a capital contribution or loan.
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You've asked this a number of times, and every answer has been the same:
There is never a 1099-Misc issued to the Shareholder of their own entity.
The Shareholder working for the entity gets paid through Payroll. That is Required.
You need to Unrecharacterize the distribution and File payroll reports and pay taxes late for 2018 to comply with the rule of required Reasonable Compensation for that person.
The S Corp files taxes using 1120S. There is no Sched C.
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It's only March....do the W-2 & payroll tax forms (state included) even tho delinquent. It's the "right" way to handle it.
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