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Did the seller actively participate in the S Corp's business?
Or were they a passive investor?
Yes, active participant....well kind of , he and brother owned but on the board and got a 1099 for services
so, yes active
Why did he get a 1099 for services instead of a W2?
@amydeland wrote: Yes, active participant....well kind of , he and brother owned but on the board and got a 1099
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.
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