[Anonymous]

Okay, I’m confused on this.

I understand personal draw aren’t deductible on Sch C, so does that mean are they taxable as other income on 1040?

In partnership/S Corp: guaranteed pmts are taxable, are personal draw similar thing or am I loosing my mind?

Help!!

[NECain]

The sole proprietor has to pay income tax and SE tax on his Sch C income. The draws do not really apply. A draw for them is just like taking money out of the ATM for us. They aren't deductible nor are they taxable.

REG - 79
BEC - 75
AUD - 84
FAR - 75
Done...Thank you Wiley Books, Wiley Test Bank, and the NINJA Notes

[Author]

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