Business & farm

A few comments:

  • I agree with @M-MTax in that I believe your ratio of salary to distributions would most likely not pass an IRS exam.
  • We can't provide too much more guidance since this is an area that is based on many factors, of which we don't have, and really this forum is not conducive for working through this type of question.
  • In my mind your ratio should at a minimum be reversed, especially if you are the sole driver of the business.
  • Also keep in mind, that this is a hot topic for the IRS.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.