Investor · Hoffman Estates, IL · Member since 2013 · 14 posts · 2 votes
Hi BP! I have read various posts regarding flipping houses under an s-corp, and am still trying to figure out what I should pay myself as a reasonable salary to not raise any red flags. I just started my s-corp and have my first property under contract. Thanks in advance for everyone's input.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
I agree it depends on the volume of business you do each year. Since you are just getting started like me, my accountant advised me no more than $40,000 or they will trigger a possible audit.Expect that for the first few years until you are a big time flipper doing 12 to 25 properties a year.
Real Estate Broker · North Richland Hills, TX · Member since 2013 · 1k+ posts · 607 votes
10y
There's no standard, it will be influenced by the volume of houses you flip, and the total profit you make. The more prolific and profitable your business is, the higher your reasonable salary should be.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
I agree it depends on the volume of business you do each year. Since you are just getting started like me, my accountant advised me no more than $40,000 or they will trigger a possible audit.Expect that for the first few years until you are a big time flipper doing 12 to 25 properties a year.
Contractor · Atlanta, GA · Member since 2016 · 104 posts · 22 votes
10y
Take a smaller salary if starting out and give yourself quarterly dividends on the profits you make. It's taxed through the business and your write off will off set it