All Forum Posts by: John Ferrara

After asking him why he wanted to run payroll from the s-corporation for me. He said that he would be able to get me earned income tax credit. He said it would be better for me since I don't have any other income and better when he does my taxes at the end of the year. My other 2 partners have other income besides this rental income and he will not run payroll for them. There is about 120k in rental income that needs to be split 40k each. Does this make anymore sense? Or just taking a 40k distribution from llcs

Bill thanks for the response. The thing is I'm not sure if his advice is the right way to go. He said from the managing company he will then create a payroll check for me (W2).

I am new to this forum and wanted some advice on my situation. I currently own 3 rental properties with two partners. Two properties are in their own LLCs and the 3rd property is an S-corporation. My current accountant had us set up another S-corporation which will be the managing company. Now my accountant is telling me to take 50% of the rental income from the properties and write a check to the managing company. The other 50% of the rental income take as a distribution from LLCs. This whole method sounds complex and I just need to pay my personal bills since I am not currently employed. Is there any advantage to doing this? Would it be wrong to just take all the rental income from the properties and just write each partner a personal check?