PROFIT SHARING COMPARISON
TRADITIONAL vs. NEW COMPARABILITY
Tax Magic #1
  Age Salary Traditional
Profit Sharing
Allocation 		% of
Salary		 New Comparability Allocation % of
Salary
Owner
60
$168,000
$25,200
15%
$42,000
25%
Employee
33
37,000
5,550
15%
1,850
5%
Employee
34
43,000
6,450
15%
2,150
5%
Employee
54
34,000
5,100
15%
1,700
5%
Employee
42
29,000
4,350
15%
1,450
5%
Employee
43
25,000
3,750
15%
1,250
5%
Totals
$336,000
$50,400
$50,400
 
Owner's Share
50%
83%