When it comes to filing taxes for a Pennsylvania S corporation with multiple office locations, there are some important considerations:

1. Business Expenses:

   • An S corporation can deduct legitimate business expenses incurred at any of its office locations.
   • These expenses can include rent, utilities, office supplies, salaries, and other costs related to running the business.
   • Each office location’s expenses should be accurately tracked and documented.

2. Allocation of Expenses:

   • To allocate expenses appropriately, consider the purpose of each office location:
     • Primary Office: The location where most of the business activities occur.
     • Branch Offices: Additional locations that support the primary office or serve specific purposes.
   • Allocate expenses based on the proportion of business conducted at each location.
   • Common methods include:
     • Square Footage: Allocate expenses based on the square footage of each office.
     • Time Spent: Allocate expenses based on the time spent by employees or resources at each location.
     • Revenue: Allocate expenses based on the revenue generated from each location.

3. Tax Reporting:

   • For tax purposes, the S corporation files an information return (PA-20S/PA-65) that includes all income, deductions, gains, and losses from its operations.
   • Shareholders report their share of income or loss on their individual tax returns.
   • The expenses incurred at different office locations are considered when calculating the overall income or loss.

4. Documentation:

   • Maintain detailed records of expenses for each office location.
   • Keep receipts, invoices, and other supporting documents.
   • Consult with a tax professional to ensure compliance with state and federal regulations.

Remember that proper documentation and accurate allocation of expenses are crucial. Consult with a tax advisor to optimize your tax strategy and ensure that you’re maximizing legitimate deductions while staying within legal boundaries.