topic Single Owner C Corp Salary when claiming a loss in Business & farm

Single Owner C Corp Salary when claiming a loss

grenning676 — Mon, 23 Feb 2026 10:53:58 GMT

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?

Re: Single Owner C Corp Salary when claiming a loss

Anonymous_ — Fri, 13 Jan 2023 15:42:37 GMT

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