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#5
08-24-2004, 07:55 AM
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 Re: Tax Treatment of Escrowed Expenses for a Sub S - quote - > > > For a Sub S corporation, is it possible to escrow expense
Then its deductible and any refund would be a taxable> > > amounts this year that would be paid next year out of the > > > escrow and take the deduction this year since the Sub S is > > > on a cash basis? > > I have never, EVER, heard of anything like this. The very > > phrase "cash basis" precludes any type of accruals such as > > what you describe. > What if it's paid but refundable, e.g. some airline tickets > for business travel in the following year, some deposits, > etc.? recovery. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
08-24-2004, 07:55 AM
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| Re: Tax Treatment of Escrowed Expenses for a Sub S - quote - > > > For a Sub S corporation, is it possible to escrow expense
In such a case, this is not "escrow". You've actually paid> > > amounts this year that would be paid next year out of the > > > escrow and take the deduction this year since the Sub S is > > > on a cash basis? > > I have never, EVER, heard of anything like this. The very > > phrase "cash basis" precludes any type of accruals such as > > what you describe. > What if it's paid but refundable, e.g. some airline tickets > for business travel in the following year, some deposits, > etc.? the expense up front. You record the expense the year in which it is paid. If you receive a reimbursement, you include it in your income for the year in which it is received. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!=  << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
08-19-2004, 07:45 PM
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| Re: Tax Treatment of Escrowed Expenses for a Sub S - quote - > > For a Sub S corporation, is it possible to escrow expense
What if it's paid but refundable, e.g. some airline tickets> > amounts this year that would be paid next year out of the > > escrow and take the deduction this year since the Sub S is > > on a cash basis? > I have never, EVER, heard of anything like this. The very > phrase "cash basis" precludes any type of accruals such as > what you describe. for business travel in the following year, some deposits, etc.? Seth << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
08-17-2004, 03:48 PM
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| Re: Tax Treatment of Escrowed Expenses for a Sub S jbk[at]piasystems.com wrote: - quote - > For a Sub S corporation, is it possible to escrow expense
I have never, EVER, heard of anything like this. The very> amounts this year that would be paid next year out of the > escrow and take the deduction this year since the Sub S is > on a cash basis? phrase "cash basis" precludes any type of accruals such as what you describe. ChEAr$, Harlan Lunsford, EA from GA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
08-17-2004, 02:31 PM
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| Re: Tax Treatment of Escrowed Expenses for a Sub S "jbk[at]piasystems.com" <jbk[at]piasystems.com> wrote: - quote - > For a Sub S corporation, is it possible to escrow expense
You answered your own question. It's a cash basis taxpayer. If it isn't> amounts this year that would be paid next year out of the > escrow and take the deduction this year since the Sub S is > on a cash basis? paid, it isn't deducted. Escrow is not paying it. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-17-2004, 02:12 PM
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| Re: Tax Treatment of Escrowed Expenses for a Sub S jbk[at]piasystems.com writes: - quote - > For a Sub S corporation, is it possible to escrow expense
NO> amounts this year that would be paid next year out of the > escrow and take the deduction this year since the Sub S is > on a cash basis? "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!= << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-15-2004, 07:10 PM
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| Tax Treatment of Escrowed Expenses for a Sub S For a Sub S corporation, is it possible to escrow expense amounts this year that would be paid next year out of the escrow and take the deduction this year since the Sub S is on a cash basis? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| escrowed, expenses, tax, treatment |
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