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Submitted By: someone
Answered: January 20, 2020 9:28 pm
Answered: January 20, 2020 9:28 pm
I’m a sole proprietor. Can I pay W-2 wages to myself?
As a self-employed person, you cannot receive a salary. You can take a draw from your business bank account to cover your personal expenses, but this has no impact on your taxes. You are taxed on your revenue minus expenses; you cannot subtract the draw.
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Tax Glossary
Tax attributes
When debts are cancelled in bankruptcy cases, the cancelled amount is excluded from gross income. Tax attributes are certain losses, credits, and property basis that must be reduced to the extent of the exclusion.
