I want to lower my reasonable salary because I am reinvesting all profits back into equipment, is reinvestment a valid excuse for the IRS?

Question

Kohari Gonzalez Oneyear & Brown · Accepted Answer

Questions about reasonable salary often turn on how the business is structured, the owner’s role in day to day operations, and whether profits are being paid out, retained, or used for capital purchases such as equipment. Reinvestment can be one factor in the analysis, but it is typically not treate For an answer applied to your exact numbers, bring this question to a licensed KGOB CPA in a focused session and leave with a clear next step.