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Tax, SDIRAs & Cost Segregation
HomeForumsTax, SDIRAs & Cost SegregationS-Corp Reasonable Salary
Ryan O.'s profile image
Ryan O.'s profile image
Ryan O.
  • Wholesaler
  • from Downers Grove, Illinois
  • Member since Dec 7, 2010
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Ryan O.'s profile image
Ryan O.'s profile image
Ryan O.
  • Wholesaler
  • from Downers Grove, Illinois
  • Member since Dec 7, 2010
Connect
Ryan O.
  • Wholesaler
  • Downers Grove, IL
26
Votes |
108
Posts
Tax, SDIRAs & Cost Segregation

S-Corp Reasonable Salary

Ryan O.
  • Wholesaler
  • Downers Grove, IL
Posted Dec 19 2013, 14:23

I understand as a shareholder of an S-Corp you are supposed to pay yourself a reasonable salary for work performed on behalf of the business. You cannot pay distributions until you first pay yourself a salary.

But, what about if you don't take any money out of the business or you take very little out, and treat that as salary. I was reading IRS fact sheet 2008-25 and it would seem to me that the IRS cannot compel someone to take a salary. What do our resident tax gurus have to say about this?

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