Discussion:Guaranteed payments with loss

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

(Difference between revisions)
Jump to: navigation, search

PBinNJ (Talk | contribs)
(New Discussion)
Next diff →

Revision as of 22:25, 22 April 2009

Discussion Forum Index --> Advanced Tax Questions --> Guaranteed payments with loss
Discussion Forum Index --> Tax Questions --> Guaranteed payments with loss

PBinNJ (talk|edits) said:

22 April 2009
I've reviewed the previous discussion but I just want to make sure the rules haven't changed. Mother and daughter formed LLC taxed as a p/s. Mom invests about 100k in salon and daughter invests zero but both work and will draw guaranteed payments. Mom and husband have other profitable businesses so in order to get mom the losses in the first year or two, I'm suggesting they divide losses something like 98% mom and 2% daughter. Mom and daughter can still draw GP's and daughter will pay self employment taxes on excess of GP over her 2% share of the losses. Sound ok? Comments, please. Thanks.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:Guaranteed_payments_with_loss"