Compensation, Fringe Benefits, Family Employment
Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Business Tax Preparation. 9 min read, ~1,276 words.
§162 deducts compensation only if ordinary, necessary, and reasonable; C corp excess becomes a constructive dividend. S corp working shareholders take reasonable W-2 wages first, then distributions, or the IRS recharacterizes. Family payroll breaks apply only in sole props, disregarded LLCs, or parent-only partnerships: child <18 no FICA, child <21...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2
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