Also, with an S-Corp the IRS expects payroll taxes to be paid on reasonable salary. 

I'm relatively new to multi-family investing over the past year or two, but realize there's still a ton I don't know. I think i've got a very solid PM managing a 5 unit- they're responsive (which I value highly) not o...

If you and the other members are active in the business, the IRS expects you to take reasonable salaries as W-2 wages.

.- Local tech workers earn an average salary of $104,000, up 18% from five years ago.

I will be qualifying for Real Estate Professional Status (REPS) in 2026 to use the marriage loophole to help create paper losses against my wife's W2 salary (she's a surgeon).

That's when it hit me: profit sharing and per-deal compensation would be the most effective approach.I keep reminding my team that, as you continue to grow, a combination of salary and bonuses becomes more viable.As our business started booming and the cash flow got juicier, I knew it was time for a compensation makeover.

It allows you to pay yourself a salary and take the rest as distributions, which can reduce your self-employment taxes.I’ve also sent you some resources in DM that should help you decide!

Expect to pay self employment tax and switch to a more real estate focused CPA.

As an employee, companies that provide benefits, 401k, insurance and a salary are preferred for some people because they want that security blanket.

You can expect cash flow to be about 5% of equity, so if you want to quit your W2 you need a fair amount of equity.Equity is hard to come by.