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In Applying the $1 Million Limit on Deducting Executive Compensation

question 144

Essay

In applying the $1 million limit on deducting executive compensation, what corporations are subject to the deduction limit? What executives are covered?


Definitions:

General Tolerance

The allowable amount of variation in any dimension within a drawing or part that is not specifically called out by a dimension or note.

Basic Dimensions

Theoretically exact measurements specified on drawings, from which tolerances are applied to define allowable variation.

Geometric Characteristic

Refers to any feature of a part or assembly that can be defined in terms of geometry, such as size, shape, orientation, or position.

Position

Refers to the specific location or orientation of an object or component relative to a base or reference point.

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