Reasonable salary for flipping houses under an s-corp

[Jeff Morrison]

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.

[Brandon Battle]

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.