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Elected S-Corp

The_TaxGuy
Level 2

The profit and lost are past through to the owner's 1040, does a Schedule C still need to be filled out?

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qbteachmt
Level 15

"Elected S-Corp" means someone has to prepare the 1120S.

"The profit and lost are past through to the owner's 1040"

Then, shareholders get a K-1.

It seems your client is not Independent, but an employee of this S Corp. There should be Payroll and a K-1 for this business and their relationship to it.

You don't use the K-1 to prepare a Sched C for the same business activity.

 

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"Level Up" is a gaming function, not a real life function.

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2 Comments 2
qbteachmt
Level 15

"Elected S-Corp" means someone has to prepare the 1120S.

"The profit and lost are past through to the owner's 1040"

Then, shareholders get a K-1.

It seems your client is not Independent, but an employee of this S Corp. There should be Payroll and a K-1 for this business and their relationship to it.

You don't use the K-1 to prepare a Sched C for the same business activity.

 

*******************************
"Level Up" is a gaming function, not a real life function.
The_TaxGuy
Level 2

Thanks for resolving the issue with my clients 1040.

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