RMG CPA, LLC
299 Cherry Hill Road, Suite 203 Parsippany, NJ 07054
Cell: 973-886-7955 Tel.: 973-712-5000 Fax: 973-712-5011 e-mail: Rich@RMGNJ.com
Please make note of our new contact information
I see two possible issues:
1. If the company is an S corp, theoretically this could be considered a distribution as there is no work being done. If it is considered a distribution, it could be disproportionate to ownership, which is not allowed.2. Overall, if it is not work, and given, depending on the relatives relationship to the person who is granting the payment, it could be considered a gift.
Home of the Connection Café.
100 Village Blvd., Suite 200, Princeton, NJ 08540Phone: 609-452-8000 | 888-421-9996 | Fax: 609-452-0474 | email@example.com