I've been a pass through (S Corp) for 15 years now.
The IRS gives what seems like vague guidance on what is deemed as "Reasonable compensation."
Google "Tax Geek Tuesday: Reasonable Compensation" for a through history on the topic.
My question is for fellow pass through folks and CPAs: How do you determine what a reasonable compensation is?
I have no doubt with the new legislation there is going to be a flurry of questions on the topic.
My experience is that is lies somewhere between what the going rate is for a similar position and around the same or more of what your pass-through income is.
