Is net distributive income included in compensation?
Yes, a partnership, trust or LLC that is treated as a partnership or S corporation for federal income tax purposes must include the net distributive income to natural persons in the wages and cash compensation component of compensation. The wages and cash compensation component of compensation is subject to the following wage limitation per 12-month period on which margin is based: • $300,000 per person for reports originally due in 2008 and 2009 or • $320,000 per person for reports originally due in 2010 and 2011.
Related Questions
- Did the Fund pay a year-end dividend? If so, what was the record and pay dates, the amount, and was the dividend from capital gains or from net investment income?
- What is the net distributive income for computing compensation and how is it computed?
- How do we treat negative Net Distributive Income (NDI) when computing total revenue?
