CaliBen Posted March 30, 2010 Share Posted March 30, 2010 If an executive has a $1.5 million base salary and defers $500,000, does that mean the company can deduct 1,000,000 of base salary this year, and then, assuming the executive has left the company at payout, deduct the $500,000 plus earnings at that time. The current bonus is structured to allow full deduction for cash bonus. Thanks Link to comment Share on other sites More sharing options...
XTitan Posted April 28, 2010 Share Posted April 28, 2010 If an executive has a $1.5 million base salary and defers $500,000, does that mean the company can deduct 1,000,000 of base salary this year, and then, assuming the executive has left the company at payout, deduct the $500,000 plus earnings at that time. The current bonus is structured to allow full deduction for cash bonus. Thanks As long as the company isn't a TARP recipient that still needs to repay TARP money or a health insurance company, then yes. - There are two types of people in the world: those who can extrapolate from incomplete data sets... Link to comment Share on other sites More sharing options...
Guest Harry O Posted May 25, 2010 Share Posted May 25, 2010 Agree. However, this is viewed as a "loophole" by the tax staff in Congress and will likely be closed by future legislation. Link to comment Share on other sites More sharing options...
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