Pay my own property management company

[Sheba Shimoji]

Hi, 

I have 17 unit rentals and I have set up a S-corporation acting as property management company. The average property management fee in my area is 10% of the rent collected. How much should I pay to my corporation for the best tax advantage? Is Lower rate better so that corporation doesn't earn much or is higher rate better so that I can deduct more on 1040?

Thanks,

[Rob Beland]

@Sheba Shimojiwhat you are talking about doing is not allowed by the IRS. The S-Corps income passes through to you and you are solely responsible for the payment of taxes. You can't create an expense by paying your S-Corp which then reduces the amount of personal taxes you pay. Basically its all your money. You cant pay yourself.