Tax on master lease...

[Shawn H.]

A family member wants me to manage their properties for them that they hold in a corporation, but legally, I don't think I can do that because I'm not a real estate broker. So, after some brainstorming, it occurred to me that I could master lease the properties from them for "90% of collected rents less expenses".

Then it occured to me that I just converted what would have been self employment income for managing properties into rental income since I'm leasing the properties.

Any tax experts care to chime in on whether that would fly in an audit?