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QUESTION

you are a majority shareholder in an engineering corporation.

you are a majority shareholder in an engineering corporation. during the prior tax year, you and your shareholders accounted for more than 20% of a corporation's compensation cost attributable to the performance of personal services. Under the personal service corporation rules, those services would be said to be:

  1. the principal activity
  2. substantially performed
  3. insubstantial
  4. ancillary
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