DEDUCTION RULES FOR BUSINESSES
01.Core Concepts
• Corporations • Ordinary, necessary and reasonable expenses deducted on corporate return • S-Corporations cannot deduct medical insurance premiums or retirement plan contributions for 2% owners • Partnerships • Expenses deducted on information return • Cannot deduct medical insurance premiums or retirement plan contributions for owners • Sole Proprietorships • Expenses deducted on Schedule C of Form 1040 • Cannot deduct medical insurance premiums or retirement plan contributions for owners