S-corporation deductions

[Belgarath]

Believe it or not, a CPA is asking me the following question.

Suppose a one person S-corp has a pension plan with a required contribution of 200,000. The W-2 salary is 100,000, and there is other "pass-through" income which is reported on the owner's Schedule C.

Question was: can the entire 200,000 be deducted if it creates a loss?

Well, I don't know. I'm not a CPA, and I don't know if there is such a thing as a "loss" allowable in an S-corp. It would seem reasonable that there is, to the extent that there is any basis on the part of the shareholder.

Anybody with knowledge in this area care to venture an opinion? I searched some past threads, but the ones I looked at weren't definitive. Thanks in advance - any any cites, if appropriate, are also appreciated.

[Bird]

I think, I say I THINK, that it's all deductible and the loss passes through. I seem to recall that one of the reasons an S-corp is used is that start-up losses are passed through.

I'm pretty sure of it, actually, but hope to hear from someone with a little more certainty.