I was planning on setting up our business in Jan 2018, as an LLC S corp. I intend to fund the business, and draw a W2 salary. While I'm very hopeful there will profits the first year, it's likely that there will not, especially after my salary, for at least one year. This will be an active real estate business, doing re flips.
1. Will the proposed Section 199a deduction be an above the line deduction? I thought so, but then wasn't sure after reading about the limitation based on taxable income.
2. How are s corp losses handled in Pass through and section 199a? specifically, if the corporation pays owner w2 salary (and payroll taxes, benefits, etc), resulting in net loss, is there any above the line 1040 deduction for that loss, to potentially offset against owner or spouses other w2 income?
3. I've had schedule C business before, but never took draws as W2 payroll. Are there differences in payroll rules or procedures when the employee is the owner?
Those are questions I've thought of so far.