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January 13, 2023
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Single Owner C Corp Salary when claiming a loss

  • January 13, 2023
  • 1 reply
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I have a single owner / employee in a C corp. For the year, prior to paying the owner, who is the only employee, a salary the C corp will have a loss. Do they have to pay the owner a salary if it will result in an even larger loss? 

Best answer by Anonymous_

You might want to read through the following IRS publications, but the basic concern is reasonableness.

 

https://www.irs.gov/publications/p535#d0e1644

 

https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself

1 reply

Employee
January 13, 2023

You might want to read through the following IRS publications, but the basic concern is reasonableness.

 

https://www.irs.gov/publications/p535#d0e1644

 

https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself