S Corp Reasonable Pay

[John E.]

Hey Guys! This is going to be quick- I promise! I've been told and read that when forming an s corp owners must be paid a reasonable salary and can't just let all of the money pass through and be paid as a dividend (b/c of the lower tax rate). That can be easily determined in a lot of fields but, how exactly does that pan out for a RE investor? What would be a reasonable salary for one in your opinion?

[Jerry W.]

It depends on how you earn income, when I flip I try to use 50% of the income as earned.