Question
A realtor client has a C Corporation (just means Corporation) and wants to discuss reasonable compensation for her services rendered to the corporation. You have
A realtor client has a "C" Corporation (just means Corporation) and wants to discuss reasonable compensation for her services rendered to the corporation. You have mentioned to her that you know there are specific rules for reasonable compensation. The client has asked you to prepare a memo on Reasonable Compensation for the salary she should take from her Corporation.
The client has 15 years of experience as a realtor and two of which are running her own real estate business, she is not a real estate broker. only a realtor who hangs her license at a large real estate brokerage firm (e.g. Berkshire Hathaway, Surterre, First Team, etc.)
______________________________________________________
Present the Research Memo as follows:
To: Carla Carlata (Client)
From: XXXXX XXXXX (You)
Date: (Date you wrote the memo)
Issue: What amount is reasonable base salary compensation for your time and services rendered to AAA Real Estate, Inc.?
Conclusion: (This is a heading)
Reasonable base salary compensation in your case would be $XXXXX per year for your contribution of time and services to the business. Additional planning would conclude that performance based bonuses should be considered on regular intervals.
Research: (This is a heading)
Code Section XX states that reasonable compensation is...
Treasury Regulation 1.XXX further details reasonable compensation as...
In (case), reasonable compensation was defined by the courts to be...
Discuss more cases you find...
Find other primary or secondary info from the web. You WILL need an APA formatted reference page, and you will need to properly cite the references in the memo.
Use APA format and should be 1 page or more.
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