amydeland
Level 2
06-22-2021
01:54 PM
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Line 5C shows where the adjustment is made, but want to make sure..
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sjrcpa
Level 15
06-22-2021
02:10 PM
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Did the seller actively participate in the S Corp's business?
Or were they a passive investor?
The more I know the more I don’t know.
amydeland
Level 2
06-23-2021
08:05 AM
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Yes, active participant....well kind of , he and brother owned but on the board and got a 1099 for services
so, yes active
Accountant-Man
Level 13
06-23-2021
02:01 PM
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Why did he get a 1099 for services instead of a W2?
** I'm still a champion... of the world! Even without The Lounge.
TaxGuyBill
Level 15
06-23-2021
04:15 PM
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@amydeland wrote:
Yes, active participant....well kind of , he and brother owned but on the board and got a 1099
I believe they need to Materially Participate in it. It seem doubtful that merely being 'on the board' would qualify for that.
