All Forum Posts by: Joanna Lenn

 Well, it would have my work in it - my W2 entertainment industry job. My CPA said it's my choice if I want to include the rental business in the S-Corp. But thanks for the info. Sounds like everyone loves LLCs!

Thank you... I will call him and ask him more. I wish taxes didn't make me break out into hives (metaphorically). Because I am smart in other things, but I know very, very little about taxes and the lingo!! Wow. Not only do I not understand the terms, but hearing them makes me nervous.  I will try. I'll call him and I'll meet some others. Wish me luck!

@Linda - thank you!  I really appreciate the feedback.  

I wonder if my guy is secretly not smoking crack, but instead there is a disconnect here, having to do with the entertainment industry specifically?  He seems really smart, and goes to conferences on taxes and whatnot. But maybe he's wrong. 

I guess I get to go meet some new CPAs here in Los Angeles and decide!

 This is great info. That example you gave is sobering! Thank you!

Yes! Putting the triplex aside... I'm claiming $2,700 in business expenses (for my W2 job) for 2017, and unless I become an S Corp or LLC he says I will no longer be able to claim those, that the new tax law won't allow me to. I'd owe $2,700 more. Seems like you and others here disagree with him?

Regarding the triplex- I don't make a ton from it yet, btw. I make a lot more from my salary. My tax man (CPA) did not assert that I need to include the triplex inside the S Corp... but, when I asked, he said I COULD put it in there if I wanted to. He specializes in the entertainment industry, not real estate.  A lot of his clients own rental income properties, as does he, however. 

Thank you SO MUCH for helping me with this decision!!

 I have 2 types of income: Rents from my triplex, and wages from my 9-5 entertainment agency job. 

Thanks for the reply! He prefers S Corp over LLC. I think it's because it ends up costing more for most of his clients when they opt to be an LLC . Costs on his end, I believe... I think he would need to charge me for 2 returns?

The reason he wants me to be an S Corp is based on my exemptions, as I mentioned. I normally claim a lot of entertainment-industry-related exemptions with my entertainment agency job. With the new tax law I will not be allowed to unless I become an S Corp (or an LLC). He says if I have the same expenses in 2018 as I just reported for 2017, I'll save over 3k next year as an S Corp than as an individual.

What do you think?

People still need housing after a crash. 

If you are planning to buy/sell/buy/sell/etc, then maybe you will get caught with your pants down and could get hurt... But, if you buy a good solid place with the 1031 exchange, you can collect rent on it regardless of a crash.

If the crash is bad it might be impossible to get maximum cashflow from the property. You could have tenant retention problems, vacancy problems, problems keeping the rent as high as you want... Once I heard of a whole apartment building getting their rents reduced - a tactic the owners did to keep their buliding full during a bad economic turn.

But, I'm a buy-and-hold type of person. If the whole economy suffers and I have to also suffer for a year or 2 or 3 by collecting a bit less rent than otherwise - that's not going to put me off.

Hey there!  I own a triplex and I also work a full time job as a W2 employee. 

Due to the new tax law, my tax man says I should become an S Corp asap. This is based on my typical deductions every year - regardless of my triplex income.  He says I can put my triplex insisde the S Corp or not. 

Questions:  

• Any pro/con advice on becoming an S Corps?

• If I do become an S Corp - will that help or hinder me getting loans in the future? I want to get another property.

• If I do become an S Corp - should I put my triplex in there, too? 

• Does having the triplex in the S Corp help protect me from lawsuits?

Thank you for any help.

Thank you, Kristin!