A client operates a small business organized as a sole propreintship and is considering change the business to operate as a C corporation. the client wants to know how certain deductable items are treated for tax purposes by a business conducted as a C corporation filling form 1120 ,US corporation income tax Return , as a compared to the way they are treated as a sole proprietorship filling form 1040 US .Individual income Tax Return.

Topic covered in the simulation:

-Charitable contribution limitation.

-Payments to owners for services rendered .

-Payments for health insurance for owners .

-Business meals and entertainment expenses