Discussion:S-Corp K-1 Income - Passive for Officer?
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Discussion Forum Index --> Tax Questions --> S-Corp K-1 Income - Passive for Officer?
| 17 May 2006 | |
| I've got a client who has an S-Corp and approximately $25K in K-1 income passing through to him and his wife, who are both 50% shareholders.
The revenues were about $150K this year, and he paid $47K in salary to him, and $8K in salary to his wife. He's also got some passive loss that he's carried over from prior year RE activity. Now he is definitely an active participant in the business, but would it be possible to say that his wife's activities are passive and thus use the passive loss to net against her K-1 income? Or does the fact that she received a salary and did a token amount of work preclude this treatment? | |
| 17 May 2006 | |
| If she received a salary, then she is not a "passive" s/h in my opinion. | |
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