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Anonymous
Posted 10/23/2007 5:02:13 PM




I know this isn't an estate tax question per se, but does anyone have any thoughts as to if you have to provide a salary to a s corporation shareholder when all of the activity is rental real estate?
Post #481
Posted 10/24/2007 10:46:34 AM
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There have been rulings that say that a corporate officer must be an employee and not an independent contractor. If the owner is being paid for services at all, there should be salary.

This is one of the issues IRS is looking for in S corporations, they've won some cases with personal service businesses.

If the owner provides no services but others are compensated for performing services, it's possible that no salary would be appropriate. But just by signing checks and tax returns, a nominal salary would be earned.

Mary Kay Foss

Post #483
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