Updated over 4 years ago on . Most recent reply
how to pay w2 from rental property passive income
We owned S Corp with rental properties. All rental incomes are passive. We hired an employee as property manager. Can we pay him w-2 from rental income? Thanks for your help.
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This sounds like a CPA question, which I'm not, so please verify with your accountant. Any entity or person can hire an employee so you can pay him a W-2. Based on your question, it sounds like all the rental properties are owned under the S-Corp. If that's the case, the S-Corp hires the employee and pays him. The employee salary is a deduction against rental income.