This seems like a "too good to be true" tax dodge in the USA milieu.
Is it correct?
Sally is a graphic designer married with a typical family. She gets $100,000 in 2017 as 1099 income.
She buys a Graphics Monitor in 2017 for $1000. We'll say, it is genuinely and absolutely a true and honest deductible expense for her work/clients. (She bought it for "a particular job" so the entire amount is deductible at once.)
She files her taxes. She gets the "standard deduction" of $12,700. So it's completely pointless itemizing deductions.
In short she gets $12,700 deductions.
She goes back in time and tries this:
She has an S-Corp (or LLC as an S-Corp). It is paid the $100,000 in 2017.
The monitor is a deduction, a cost, for the S-Corp. Which thus profits $99,000 in 2017.
Sally gets $99,000 income, and takes the standard deduction of $12,700.
In short she gets $13,700 deductions.
This appears to be an absolutely correct way to save 1000- in taxable income.
Any deductions ("costs") totaling under 12700 in situation "A" are totally wasted; in situation "B" you get them.
It seems too good to be true - am I correct?
Just a clarification for any future googlers, in fact I am not correct. IE, there is no advantage, you "get" the $1000 either way. HartCO explains it below!