Insights
Notes on the questions that keep coming up
Written for owners and their advisors. Positions are researched to primary authority and cited, so you can check the reasoning rather than take it on faith.
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Reasonable compensation: what the standard actually is
The 60/40 rule is folklore. There is no statutory percentage, and the cases that got decided against taxpayers were lost on facts, not on arithmetic.
Why an S corporation distribution can be taxable
A distribution is not tax-free because the company had cash. It is tax-free because you had basis. Those are different questions, and only one of them is on the bank statement.
Missing the S election deadline is usually fixable
The statutory deadline is tight and widely missed. The administrative relief is broad and widely unknown, which is the wrong way round.
Rather ask than read?
A thirty-minute call answers the version of the question that applies to you.