ShoeBox Taxes
Level 5
03-01-2024
03:32 PM
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Thanks, everyone.
And I think I accidentally "accepted as solution" the wrong one, oops.
Several sources on irs.gov (which means it's more authoritative than any investor's site, but I know it doesn't necessarily mean anything) say at least 40% of the net income of the S-Corp should be wages, but I've also seen much discussion that refutes that. The IRS notoriously shies away from defining what's "reasonable," for obvious reasons, but I do see that "40%" thrown about a lot.