Hi,
I am a sole owner/shareholder of an S-corporation incorporated in Washington State. I am thinking about taking a contract job in NYC and would temporarily move there.
Let's assume that corporation income from NYC work is $200k/year. I would like my corporation to rent me an apartment in NYC for this temporary assignment and I can get reimbursed for its cost. If the apartment is $40k/year that leaves net income of $160k which I can issue myself as salary. I would have to pay FICA, FUTA, NYC state and city, as well as federal income tax.
Since FICA stops at ~$90k I would think this would be a better way to go. Since net income for corporation after expenses (apartment) and my salary would be 0, I would think there would be no tax to pay on corporate level. I do not think NYC could double tax me, or they could but tax basis would be 0, correct?
Please let me know if I am close or completely off in my calculations/ assumptions. Thanks