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Level 1

S corporation in NYC

Good Afternoon,

 

I just recently started a S corporation based in NYC on October 2017. I am going through the software to file the S corporation form 1120s. The S corporation has not made any income, but I have opened a seperate business account and deposited cash. Additionally I purchased goods with that accoutn but has not been sold yet. The cost of good is very low which is only 200 dollar. Would that be included in part of the total asset? Does the total asset include all the cash deposit in the business checking account? Additionally would this be a short tax year from october 2017 to december 2017? Does the Section 263A costs need to be calculated?

4 Comments
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Level 15

S corporation in NYC

corporation accounting is more stringent than sole proprietor or partnership accounting, and I strongly suggest that you get with a tax accountant to get things off on the right foot.

 

Section 263 cost does not have to be calculated unless the company has over $10 million in gross receipts.

 

Key concept is does not have to, I do not report anything to the IRS that I do not have to, so I do not do the section 263 on income tax returns, yet.

 

Again, get with a tax accountant, especially since NY has state income tax too, my state does not have it.

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Level 5

S corporation in NYC

Greetings DTseten. Sounds like you are doing your own taxes with software which is good but unclear what you're using for your company books. If using Quickbooks or other accounting software it will clearly show you all the company assets, liabilites and equity accounts on a balance sheet.  Inventory and cash certainly are assets.  If you have no sales of inventory  then  you have no income unless you also bill for services.  You may have a loss  if you have expenses, which pass down to your individual return.  Your articles of incorporation should spell out what month your tax year ends (calendar or different fiscal month).   Good luck!

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Level 2

S corporation in NYC

I started a S Corp in October in California; I spoke with a mentor from SCORE, a group of retired business men or women associated with SBA -they are all over the United States: he advised me to see a CPA in which makes no sense since I made no money, so I call the Federal Tax Board, they informed me to follow the instructions from the Form for S Corp. But one thing is clear that it is due 15 of March, SOS minimium is $800 which should be exempted if this is the first year of business. if we file oct-dec, but one rep said if you file oct-nov 1, 2018 then you are exempted...i'll try to make the deadline, but if i get stressed out file for an extention. Call your tax board to make sure you get the facts.

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Level 15

S corporation in NYC


@Acupuncture4Uwrote:

Call your tax board to make sure you get the facts.


Amen!  Always go to the source for legal and tax information.

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