Owner of Incorporated Business Can’t File Schedule C

If a business is incorporated, income and expenses must be reported on the corporate return. The owner can’t choose to report them as self-employed income on Schedule C. That’s what one taxpayer found out when he allocated income from his affiliated marketing business between his corporation and Schedule C. What’s more, $180,000 of corporate funds used to pay personal expenses was a taxable dividend to him. #IdeaoftheDay