I have looked all over and can't find any instructions for this. Do they exist? Specifically for (c) percent of time devoted to business. Lets say two people spend 20 hours a week working. One does nothing else; the other works 40 hours a week elsewhere. Are they 100% and 33%, both 50%, or something else? I would really like to find actual instructions for this, but they don't seem to exist.
For SALARIES paid officers, you can set tham at any agreeable amount and reasonable for what they do. There are no IRS instructions for this. The division of profits, however, must be strictly proportunal to stock ownership. ed
It means usual working time. For the first one above, 100%. For the other, 33%.
ChEAr$, Harlan Lunsford, EA n LA
I understand that; but the 1120 Schedule E asks for "percent of time devoted to business". I am wondering how that is calculated for part time employees who are paid officers.
And generally stock ownership must be proportional to capital contributions (or equivalent).
Stu
I don't suppose there is an actual reference for this is there? I am sure you are right, but I would love something from the government...
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