An S-Corp Officer is both employee and 100% shareholder.  With this logic, an S-Corp Officer's wife who indirectly owns 100% of shares also work for the Company, participating decision making with the husband, I wonder if it makes sense to report her wages as  part of the "Officer Comp" on Line 7 of Form1120S?  (Assume Married Filed Jointly)
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sjrcpa
Level 15

While there is imputed stock ownership, there is not imputed officership. 


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Thank you for responding.  I also consulted my tax professor and he said the officer’s legality is actually not a tax issue, but is governed by the state law.  As long as the wife is a legal officer under the state jurisdictions where the S-Corp is incorporated, she can report her salary as officer comp.  

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sjrcpa
Level 15

Correct. In your OP you never said she was an officer.


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