[Bob Kontak]

berettafan - Thank you. This is good insight. My pal is a silent member here and I suggested posting in off topic so he can view the thread.

Good point on the FICA. I don't know the FICA cut-off anymore. It's probably over six figures but depending on personal vs his corp tax structure, his salary may be $20k and the bonus $10k. Don't know. Also, for discussion, if his salary is $200k and bonus $100k, itemized deductions fizzle out as part of the overall equation "calculating" damage.

Regarding market volatility, surely the intended deferred bonus that remained in corporate revenue were not kept in a passbook savings account from the beginning of the last fiscal year. The "bonus" had to have been streamed into financial instruments. Last year was a pretty good market, so some of the tax whammy was clawed back thru financial gain. Had there been a down market, losing a chunk on circa $35k would have been way better than the same percentage chunk on $50k. So for last year, the CPA kinda did a good job screwing up.

Thanks again for your input.

FWIW, I passed the CPA exam first time in the way back (just a couple points away from the "300 club" - I smoked Theory) but operational accounting was my gig.

All the best.