If you set up your S corporation to save money on taxes (and I’ll bet you did), this article is for you.
You see, it will explain an extremely important decision you have to make. A decision that can have a huge impact on how much taxes you will have to pay.
I’m talking about how you determine
what your S corporation salary will be.
The fact is, to take advantage of all the tax breaks you’re entitled to, you have to be a bit like Goldilocks.
The salary you set can’t be too high or two low. It has to be an amount that’s just right.
Want to get the whole story on how to come out a winner and avoid IRS problems? Read the full article titled Tax Tips: Avoid Trouble: Don’t Let the IRS Set Your S Corporation Salary.
Three ways our fact-filled article can help you:
- You’ll learn why an important IRS publication makes must reading. It’s called “Reasonable Compensation Job Aid for IRS Valuation Professionals.” The reason it’s so important is that it provides the roadmap you need for establishing the right salary for you. You’ll get all the details when you read the full article.
- We’ll explain how to choose a salary that will pass IRS muster. The “job aid” I mentioned above, lists three general approaches to determining “reasonable” S corporation compensation.
- The market approach
- The income approach
- The cost approach
Which one is right for you? You’ll find out when you read the full article.
- We’ll tell you how you can sleep well at night. No matter which approach you choose, you’ll stay out of trouble if you can show the IRS two must-have items.
- Your salary specified clearly in your S corporation minutes
- Detailed documentation that proves your salary is “reasonable”
All will be explained when you read the full article.