Step by Step: How to Determine Reasonable Compensation for an S Corp Owner
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Step by Step: How to Determine Reasonable Compensation for an S Corp Owner
- February 1, 2015
- Posted by: RCR Admin Team
- Category: Archived
By Paul S. Hamann & Jack Salewski, CPA, CGMA
The old adage “Simple isn’t always easy” perfectly sums up the IRS and Court guidelines for determining Reasonable Compensation for an S Corp owner. At first blush, the IRS and court guidelines seem simple enough – but once you start to follow the roadmap the IRS and Courts have laid out – something simple quickly turns to something more challenging. Let us explore step by step best practices for determining Reasonable Compensation for a shareholder-employee of an S Corp:
