Both S corporations and C corporations must pay reasonable compensation to shareholder employees. This course will discuss the reasonable compensation issue for both entity types using case law as a foundation for determining the proper amount. In addition, the class will focus on reasonable compensation as a tax planning strategy, including impacts on other tax benefits, such as the §199A deduction.
Learning Objectives:
Describe how the reasonable compensation requirement applies to S corporation shareholders.
Describe how the reasonable compensation requirement applies to C corporation shareholders.
Apply case law principles to determine appropriate reasonable compensation amounts.
Calculate how reasonable compensation impacts the tax outcomes of both the corporation and the shareholder.
Education Information
IRS Program Number: NMVBP-T-00210-22-O
Length: 100 minutes plus optional question-and-answer session (no CE)
Prerequisite: None
Advanced Preparation: None
Program Level: Basic
Delivery Method: Online Webinar/Group Internet Based
Field of Study: NASBA Taxes; IRS Federal Tax Law Topics/Federal Tax Related Matters
Credit Hours: 2 CE/CPE
Instructor: Thomas Gorczynski, EA, CTP, USTCP Click here to learn more about the instructor.
All continuing education credit is provided through Gregory & Associates, Inc. which is doing business as Compass Tax Educators. Click here to learn more about our education policies.
