Tax Strategy Blog for Business Owners

“With an S-Corp, minus reasonable compensation, the income is passive, correct? So real estate depreciation could reduce it?” Using an S-Corp for rental property sounds smart when a brother, a friend or half the internet says it’s the best structure. But S-Corps are built for active businesses — and rental real estate is passive by […]

“What tax advantages are available for a residential property that has a short-term rental entitlement, in a city that doesn’t have many legally operating STRs?” A short-term rental ban in your city doesn’t rewrite the federal tax code — but it can take the strategy off the table anyway. That’s the confusion behind this question […]

“I earned an additional $70,000 this year — what can I do now to lessen my tax impact? I’m an S-Corp.” S-Corp reasonable compensation is the answer almost nobody leads with. A customs broker running an S-Corp asked what to do with an extra $70,000 of profit this year — and before any deduction, strategy […]