All Forum Posts by: David Rende

George,

Thank you for your response. The trick with those office or other expenses is that there is no way to bill for your time - unless I'm missing something.

I talked to a CPA today that suggested setting up a single-member LLC which would maintain a legal separation but still allow me to pay myself for rental property management and allow pass-through income on the back end.

I understand that the income for the single-member LLC would be subject to FICA taxes but I have a unique tax situation in which it would be better to have it there than on the passive income side.

Anyone have any other thoughts....

I'm trying to figure out the best way to reduce my rental income. 

I considered a sole proprietorship management company but it just seemed that that wouldn't be legit - maybe it would but I wasn't sure. My other thought was to use an S-Corp which would at least be a legal separate entity but still allow pass through income. 

I'll put it this way in a hypothetical scenario.

Net Rental Income: 30,000

Expenses: 26000

Net: 4000 (I'd like to get this to $0)

Could I pay the S-Corp (or LLC) $4000 a year and deduct that as an expense. (I'd prefer to not do an LLC because it seem the fees in illinois are even higher than an S-Corp)

Any thoughts?

Dave