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What is reasonable compensation for the owner of an S Corp?

S-Corp Reasonable Compensation
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Michael Cash
The S Corp status is irrelevant. Reasonable Compensation is the amount that the person could expect to earn doing the identical job as an employee of someone else. You can't pay yourself next to nothing and take the rest of your income as a Schedule K Distribution to avoid paying employment taxes. Doing that is low lying fruit for IRS auditors.
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