What is Reasonable Compensation for S Corporations?

Follow When it comes to setting compensation, it’s common for the shareholder –employee to want to minimize compensation in favor of distributions.  The reason is: to reduce payroll taxes.  The problem lies in the fact that the IRS will not S Corp taxpayers to forgo...

Why You Should Never Hold Real Estate in a Corporation

While it’s true that you can put real estate into a corporation without a tax fee, you can’t withdraw it without giving the government its due. Here’s why: Section 1001, under general tax principles states that the transfer of appreciated property with show gain for the difference between the amount entered on the transfer minus […]

Follow While it’s true that you can put real estate into a corporation without a tax fee, you can’t withdraw it without giving the government its due. Here’s why: Section 1001, under general tax principles states that the transfer of appreciated property with show...