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Updated about 8 years ago on . Most recent reply presented by

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Joe Deemer
  • Marlborough, MA
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Llc that are elected as s corp still face the 25% passive income?

Joe Deemer
  • Marlborough, MA
Posted

Do llc that are elected as s corp still face the 25% passive income?

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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
754
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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
Replied

Christian Scalla It depends. First question to ask is are you a passive investor or do you materially participate in the activity? Next, do you have basis in the S Corp if you are nonpassive with respect to the S Corp?

I recommend you consult with a CPA who knows both real estate and pass through taxation to assist you

  • Lance Lvovsky
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