Common Deductions From An S-Corporation Tax Return

If you are the owner of a small business and must fill out the 1120 S corporation tax return form every year, one of the most important sections to fill out properly is that regarding tax deductions. If you aren’t filing your deductions properly, you could end up paying a good deal more annually than you should.

Basic Deductions

There are 12 business expense tax deductions that just about any business will have to file for, and thus each has its own category on the tax form. Listed on lines 7-18, these categories are:

  • compensation for officers
  • salaries and wages
  • repairs and maintenance
  • bad debts
  • rents
  • taxes and licenses
  • interest
  • depreciation
  • depletion
  • advertising
  • pension and profit-sharing plan
  • and employee benefit plans

Other Deductions

There are many more deductions that are available for small businesses. In fact, most of your deductions probably won’t even be listed in those 12 categories. For anything that doesn’t fit into those 12 lines, line 19 has the “Other Deductions” section.

Common tax deductions include:

  • automobile expenses
  • bank charges
  • consulting fees

For the most part, deductions listed here will be specific to your business. For example, horse business tax deductions might include expenses for transporting horses.

For more details on reporting various deductions, or just to be sure you get the most out of all potential deductions, consider hiring a professional tax consultant with experience on 1120S forms.

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