S- Corporations for rental property

[Jesse Richards]

Hi Guys,

I am new to this group.  I have a couple rental properties and I was advised by my cpa to retitle them in my S-corp.  He also wants my to have my rent paid to the S-Corp and start paying all of the bills for the rentals out of the S-corp Bank account.  I like the idea of paying all of the expenses out the the Corp Bank account, but I am unclear why I should retitle the Properties in the corp name.  Do you any of you guys us S-corps for you renetals?  If so why and how?  Thanks

[Natalie Kolodij]

You almost NEVER want Rentals in an S corp. 

There is NO tax advantage, and often there can be a ton of negatives. I would recommend a new CPA over this advising. 

The reason an S corp saves you money is by allowing a salary and in exchange we can reduce self employment taxes. But rentals already don't pay self employment tax. 

Google "Why you shouldn't keep rentals in an S corp" and read the first page or articles on it there. 

I know Tax pros who even refer to recommending the S corp for rentals malpractice.