new tax law pass through deduction


Eli

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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?
 
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Drmdcpa

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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.
 
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