Both S corporations and C corporations must pay reasonable compensation to shareholder employees. This course discusses the reasonable compensation issue for both entity types using case law as a foundation for determining the proper amount. In addition, the class focuses on reasonable compensation as a tax planning strategy, including impacts on other tax benefits, such as the §199A deduction.
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.
IRS Program Number: NMVBP-T-00210-22-S
Length: 100 minutes plus optional question-and-answer session (no CE)
Advanced Preparation: None
Program Level: Basic
Delivery Method: QAS Self-Study (NASBA) / On-Demand (IRS)
Field of Study: Taxes (NASBA) / Federal Tax Law Topics/Federal Tax Related Matter (IRS)
Credit hours: 2 NASBA CPE / 2 IRS CE
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Course expires one year after purchase.
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.