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Consider a Closely-Held C-Corp (NOT classified as PHC/PSC!) The Corp has 3 sources and types of income. Active (Ordinary Operating Business), Passive (E.g. Rental Income) and Portfolio (E.g. Interest from investments such as Loans and Stock). The Corp employs 3 Managers per each business.
How would the accounting of such Corp look like?
Example Say there is $50K gross income from the Active biz, $100K gross income from the Passive, and another $20K income from the Portfolio biz. Assume each manager paid $50K annual salary. Would it be accurate to sum the entire gross income, deduct the salary cost and the Corp pays tax on the AGI? I.e. total gross Income = $50K + $100K + $20K = $170k deduct the managers salaries ($50K x 3 = $150K) and so the total taxable income is: $170K - $150K = $20K?