CPA or Tax Professionals

[Brandon I Garcia]

Is there any CPA or tax professionals that would like to get a discussion going or what topics usually come up when a real estate investor goes to you? Things you like to ask, advise, or implement? New to real estate and I want this to be a niche of mine as a tax professional so any expertise would be greatly appreciated!

[Eamonn McElroy]

Typically an LLC would hold the property and, if you wanted to take advantage of lowering fica taxes on profits you would set up a separate S-corp to act as the management company. But this would be advised when you expect to reach a decent amount of profits.

In general, rental real estate is not subject to SE taxes, so what you're proposing here is unnecessary and actually ends up costing the individual more in taxes and administrative overhead.