Generally, a Closely Held Family Corporation Is Not Permitted to Take

question 78

True/False

Generally, a closely held family corporation is not permitted to take a deduction for a salary paid to a family member in calculating corporate taxable income.

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Definitions:

Details of Performance

Specifics outlined in a contract or agreement indicating how and when the contractual obligations must be fulfilled.

Personal Performance

The fulfillment of duties or tasks by an individual, often referring to the execution of a contract by personal action.

Contractual Duty

Obligations that a party is legally bound to perform under a contract.

Debt Collector

A person or company tasked with collecting money owed on past due accounts from debtors.