Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
9y
Christian Scalla It depends. First question to ask is are you a passive investor or do you materially participate in the activity? Next, do you have basis in the S Corp if you are nonpassive with respect to the S Corp?
I recommend you consult with a CPA who knows both real estate and pass through taxation to assist you
Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
9y
If I wanted to correctly lay shingles on a roof I wouldn't ask a dentist how to do It.
Consult a real estate attorney / and or your CPA
End of story .....
Questions of this nature in a public forum are a slippery slope
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
9y
Your question is not specific enough. S corps are pass through entities and generally do not pay tax. Income will pass through to the individual and retain its character. So dividend income will remain dividend. Rent income will remain rent income. All subject to the same tax rates as the individual.
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
9y
Christian Scalla It depends. First question to ask is are you a passive investor or do you materially participate in the activity? Next, do you have basis in the S Corp if you are nonpassive with respect to the S Corp?
I recommend you consult with a CPA who knows both real estate and pass through taxation to assist you
CPA and Investor · Paramus, NJ · Member since 2017 · 28 posts · 11 votes
9y
@Joe Deemer I believe you are referring to the "sting" tax on net passive income. That applies to S Corporations with accumulated earnings and profits. An LLC that was previously taxed as a partnership making an 'S' Election will not have accumulated earnings and profits.
Like everyone else has said in this thread always best to consult an adviser as I may not have all relevant of the facts.