Profitability V. Distribution
-
Profitability V. Distribution
- July 1, 2014
- Posted by: RCR Admin Team
- Category: Archived
By Paul S. Hamann & Jack Salewski, CPA
One of the most frequent questions we receive is how profitability factors into a Reasonable Compensation calculation. Unfortunately, Reasonable Compensation has very little to do with the Profit or Loss of an S Corp, and everything to do with the S Corp’s Distributions.
-
Case Study: Profitability V. Distribution and Reasonable Compensation
- March 1, 2013
- Posted by: RCR Admin Team
- Category: Blog
By Paul S. Hamann
One of the most frequent questions we receive on the issue of Reasonable Compensation (RC) for shareholder-employees (SE) of S Corp’s revolves around the profitability of the S Corp. Unfortunately, RC has very little to do with the Profit or Loss of an S Corp, and everything to do with the S Corp’s Distributions.
