W2 --> 1099 : Real Estate Professional - Tax Status - Does it make sense?

[Benjamin Sol Ignacio]

Good Morning!

I currently work in Land Development as a W2 employee making $200k+ a year. I had spoken with my previous CPA about possibly becoming a 1099 for my current employer to achieve Real Estate Professional status. Even though my primary income is in Land Development, becoming a 1099 for this company, does that give me Real Estate Professional status to where I can offset my passive income from my rental properties?

1099 Pros

- I'll be given more money
- I have more tax strategies available to me (S-Corp)
- I may be able to qualify as a Real Estate Professional (rental property write offs / deductions etc?)

1099 Cons

- More of a headache to manage

Is anyone aware if what my CPA said is accurate?

Thank you!
Benjamin

[Ashish Acharya]

No, the REPS is not automatic. 

In the end, it is the same hour requirements. If hours are not decreased at 1099 gig, you have the same issue. 

Yes, you have more tax-saving opportunities with S-corp vs W2.