abctax55
Level 15
08-06-2021
10:21 PM
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And 'reasonable' compensation is just that and it's based on *services rendered*.
It is not based directly, or even indirectly, on net income of the current year.
$100K in distributions vs how much in salary vs hours worked vs number of employees vs capital invested?
ALL come into play to determine the 'reasonable' compensation.
HumanKind... Be Both