Abby:
Are we talking about a trade or business?
Robert N. Brown, C.P.A.
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Jericho, NY 11753
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On May 6, 2013, at 8:39 PM, Abby Alhante wrote:>
>
> hi,
>
> I need help in understanding the classification of income... if a shareholder of an S Corp works in the corp and receives income through the K-1 as OI I am under the assumption that this is not passive. However, if that shareholder separates himself from service, but still owns the shares, does it then become passive? Consider a trade \ business jointly owned by H & W yet only H works in the business. do they each have different classes of income?
>
> any help apprecaited
> -------------------------------------------
> Abby Alhante
> KURCIAS & ALHANTE, CPAs LLC
> Woodbury NY
> -------------------------------------------
>
>