An unfavorable exception applies to deductions for compensation paid by a publicly traded company to its chief executive officer or its four highest-paid officers (other than the CEO). In this case, deductible compensation amounts are generally limited to $1 million a year per executive. Certain exceptions exist for performance-based compensation that is approved by a majority shareholder vote and verified by the board of directors.
Tip: No such limits apply to closely held companies.
- Small Business Tax Deduction Strategies No matches