Currently a S Corp. We took a loss last year so one of the reasons of our deduction would be because the loss. But not sure how that would play out if were taking shareholder distributions. But by taking a paycut and taking more distrubutions wouldnt our P&L improve since the distributions dont affect the P&L? One of the big reasons I ask this is we have a line of credit with our bank. After seeing our loss they are a bit concerned. Our first option we took is we are building our own software that we were expensing. We decided to capitlaize is as deemed we could based off the guidlines. We let them know we did that and are awaiting there feedback