Calculating Gross Income in an S and C Corporation
A client received an annual salary from his employment of $40,000. He was a 50% owner of both a C Corporation and an S Corporation. The C Corporation had net profits of $20,000, and the S Corporation had income of $10,000. Neither corporation made a distribution. The client’s revocable trust had income of $5,000 but made no distributions. What was the client’s gross income for the year?
- $40,000
- $45,000
- $50,000
- $60,000
