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Can contributions to a deferred compensation account be added to shareholder basis if the s-corp owns the account?

Jalani
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PhoebeRoberts
Level 11
Level 11

No. The whole point of deferred comp is that it's funded with money the employee doesn't yet have (and hasn't paid income taxes on...). The money belonged to the corp both before and after the account was funded.

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PhoebeRoberts
Level 11
Level 11

No. The whole point of deferred comp is that it's funded with money the employee doesn't yet have (and hasn't paid income taxes on...). The money belonged to the corp both before and after the account was funded.

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Jalani
Level 1
Thank you.
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