Jaysteel9667 wrote:

- quote -

Going out on a limb here, I'm assuming you own the S corp
yourself? 100%? less? At any rate, if you're more than a
2% owner, this idea will never fly.

In fact percentage ownership doesn't apply. The expense
doesn't meet the ordinary and necessary tests for deduction.

Cheer4,
Harlan Lunsford, EA n LA

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Can I set up something with my S corporation that allows me
to pay off the remainder of my student loans ($50K) from the
company account. Could I either expense it, or set it up as
a grant or an option in the same fashion that my previous
employer gave me a tuition grant that expired after 48
months. That employer gave me $30,000 to cover tuition
costs and I essentially "worked" it off over 4 years time.
The grant was then relieved. Can I do something similar for
newly formed S corp. It would be a nice way to pay off my
student loan and also reduce my corporate tax base by having
an additional expense of $50K.

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