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Level 1

Can I pay my daughter out of a s corp checking through a transfer as long as I don't go over 12 k per year?

 
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Community Champion

Can I pay my daughter out of a s corp checking through a transfer as long as I don't go over 12 k per year?

Is she a minority shareholder? Share ownership eligible for distributions that will be on the K1?

 

Otherwise,  hire her on payroll for whatever she is worth.

 

Or give her cash from your personal account up to gift tax exclusion of $15,0000 and jointly with your spouse you can give her 30k free of tax.

 

The $12k exclusion shelter from tax is only pertinent to your child earning a W2 wage from your business and a transfer wont cut it

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