S corp taxes and personal loan

[cookies]

Hello

I just started an S corp (with an accepted 2553) at the end of 2012. I only had about $100 come in (deposited in s corp. bank account) but had about $500 in advertsing cost and $300 in start up costs as it is just a small web based company. I am the sole stockholder and lent the S corp the $ for the expenses from a personal bank account. I am working on the S corp taxes and individual taxes and don't want to hire an accountant this year with so little in income/expenses. I have read forum posts but still have some questions as i am confused on some parts of 1120S and Schedule E of individual 1040.

1. The S corp lost $700 of what is essentially my $. Can that loss be deducted off my personal taxes (Schedule E)
2. With only $100 coming in and being used to pay for co. advertising, I don't have to report a salary with so little income correct? It looks like that from other forum posts. Thus I will have no taxes for the S corp
3. Can I get mileage reinversement for my travel related to the business (this would be with the 1120S not E?)
4. From other posts lending the S corp $ from personal checking account when needed doesn't look like a tax issue but is there a better way or something I need to file (how is the $ coming from personal account labeled on 1120S - income, loan, not reported)?

Thanks

[Evan]

1. Yes. You can deduct losses up to your stock and debt basis based on what you contributed to the S-Corp. Any tax program should prepare some type of paperwork to keep, and you should make sure you keep this up to date over the life of the entity.
2. Correct, no salary needed.
3. Yes. You should establish a travel & expense report and file it, just like an employee at any business.
4. Money contributed is either a loan (for which you should have a loan agreement in place between you and the business and charge a reasonable interest rate) or a capital contribution (either common stock or additional paid in capital...)

[cookies]

Thanks Evan for the help

I had a couple more specifics

On question 1. Nonpassive loss from K1 of 1120S is then reported on Schedule E line 28 of my personal 1040, correct?

On question 4: Capital contrib. added to line 23 of schedule L of 1120S under it looks like "additional paid-in" capital. The capital contribution doesn't count towards the S corp loss b/c all that $ (cap. contrib) was spent and documented in line 16 (advertising) and 19 (other dedutions) of the 1120S which would then reflect the loss the S corp incurred correct?

[Evan]

1. It's reported on Schedule E and also on the first page of the 1040.

2. Capital contributions under APIC are fine. I'd recommend for payments you made personally for corporate expenses be classified as a shareholder loan, as you should be reimbursing yourself for these, than considering a capital contribution. But either way, yes, these amounts would then be creating the loss of the business.