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Accounting. Audit and Tax
 CPAnet Forum : Accounting. Audit and Tax
Subject Topic: Taxable Gift Vs. Payroll (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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JWEBER
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Joined: 23 Feb 2011
Location: United States
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Posts: 4
Posted: 24 Mar 2011 at 08:33 | IP Logged  

Two people start a business and partner A puts in all of the cash capital, partner B will be getting their capital through their service. Partner A gives partner B cash to live on while they are starting the business before operations begin. Is that going to be considered employee pay that would be subject to social security, etc or is it going to be deemed a gift? The amount is well over the $13,000 annual exclusion.

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