COVID RELIEF: Paycheck Protection Plan

[Life Hawk]

What salary is reasonable?

What ever your wife will allow you to have.

 

[theinsuranceman]

I used $1000 monthly salary to get a response. I am not going to post my tax info on this forum. Been audited twice in the past and it was no fun. Sure don't want it to happen again.

What salary is reasonable? My CPA says 60/40 is acceptable. You can't really get a solid answer so if you are audited I guess you will find out then.

Fire your CPA. It's 2.5 X your "taxable income".
Line 31 on Schedule C. "Net profit" = "taxable income".
What is 60/40?

 

[Tahoe Ray]

What is 60/40?

He's filing as an S corp. 60% is distribution, 40% is W2 salary. That's a pretty typical split.

 

[NewbieNewbie]

He's filing as an S corp. 60% is distribution, 40% is W2 salary. That's a pretty typical split.

Is the benefit that you get around payroll taxes on the 60.

 

[Tahoe Ray]

Is the benefit that you get around payroll taxes on the 60.

Yep.

 

[Northeast Agent]

Florida man charged for buying Lamborghini car with PPP loans

Federal prosecutors said in a statement "that within days of receiving the PPP funds, Hines purchased a 2020 Lamborghini Huracan sports car for approximately $318,000, which he registered jointly in his name and the name of one of his companies."

In the days and weeks following the disbursement of PPP funds, the complaint alleges that Hines did not make payroll payments that he claimed on his loan applications. He did, however, make purchases at luxury retailers and resorts in Miami Beach.