Operating Expense 1120s tax question

[Ray G.]

Quick question, if i have 10k of liabilities, how do i show that on my 1120s, specifically which line?  It's an operating expense.. 

[Steven Hamilton II]

What are the liabilities?  Are you Cash or Accrual basis?

If you are cash basis it is not deductible until it is paid.

If you are utilizing a corporation or a partnership you are required by the tax code to maintain a set of books. That means you should be able to product a balance sheet and a profit and loss statement.

99% of individuals should not be preparing an 1120s. (about 40% of accountants should not either)