Licensed Realtor- S Corp can manage own properties??

[Kumar Paj]

Hello BP Experts.....

I am a licensed Realtor and hold multiple properties under my personal and/or LLC's name. As a Licensed Realtor I do have my S-Corp (Let's say ABC Realty Inc.) which is affiliated with a Managing Broker/company (e.g. ReMax/ KW) and earns RE Commission income. I was wondering if I can use my S-Corp as a management company i.e. to manage my personal/LLC properties. 

By this way ABC Realty Inc. (owned by me, as a RE Agent) can manage properties owned by myself/my LLCs. and collect rent. 

I wanted to make sure this is legal and if there are any caveats.

Will appreciate recommendations/thoughts, inputs....

Thanks!

[Linda Weygant]

Originally posted by @Judy Parker:

@Steven Hamilton II Why shouldn't an "S" Corp. own investment property? Just curious. I've noticed that Accountants seem to recommend "S" Corp., while Attorneys seem to recommend an LLC, for owning investment properties.

 The reason why you wouldn't want to hold passive income producing assets in an S-Corp is that the S-Corp is created for non-passive activities.  If greater than 20% of the income in an S-Corp is generated from passive activities, then the IRS may revoke the S-Corp status and convert the entity to a C-Corp.  C-Corp taxation is one of the highest structures and is subject to "double taxation" on the corporate profits and again at the shareholder level when the profits are distributed as dividends.