The tax reform pass through deduction has a W-2 Wages limit. In case of a partnership, guaranteed payments do not count as W-2 Wages. Can a salary paid to a partner's spouse, and properly reported as a W-2 wage, be counted towards the calculation of W-2 wages?
new tax law pass through deduction
- Thread starter Eli
- Start date
It is limited by the greater of 50% wages or 25% wages plus 2.5% of gross fixed assets, if I remember correctly. Thus you do not need wages if you have assets.
In regards to your question about wages to a partner's spouse, yes a partner's spouse can be an employee of the partnership. There are certain issues when this happens especially if the partnership sponsors an employee retirement plan.
In regards to your question about wages to a partner's spouse, yes a partner's spouse can be an employee of the partnership. There are certain issues when this happens especially if the partnership sponsors an employee retirement plan.
Last edited: