Single Owner C Corp Salary when claiming a loss

[grenning676]

I have a single owner / employee in a C corp. For the year, prior to paying the owner, who is the only employee, a salary the C corp will have a loss. Do they have to pay the owner a salary if it will result in an even larger loss? 

[Anonymous_ · Accepted solution]

You might want to read through the following IRS publications, but the basic concern is reasonableness.

https://www.irs.gov/publications/p535#d0e1644

https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself