Wow, that's nuts.

I'll hand all of this over to my accountant at some point in the future, but first I'm trying to understand the nuts and bolts of it.

@Russell Brazil I have the reading comprehension of a gnat but one of the most fascinating aspects in all of this for me is asset protection and the proverbial "S" throwing contests that I've witnessed when it comes to the law.

In a nut shell; this is the best of both worlds.

If she operates as an S-Corp and can establish that her reasonable compensation is $60k and takes $60k as her W2 salary, then she saves 15% SE tax on the remaining $40k = $6k savings.However, SOLO AGENTS should not play this game, in my personal opinion, for the same reasons that were mentioned by @Russell Brazil.

@Russell Brazil.

@Russell Brazil Are these A/B properties single family or multi (or some of each)?

@Lee Zap Martin thanks, not to sound unappreciative but I know all that, what drives me nuts is that every attorney has some different answer that they speak of like its fact and not opinion, which it must be if they all contradict each other, or they don't do LLC work enough to really know and are presenting their guesses as fact.

@Russell Brazil thanks...

So if the $200k property made 10% ($20,000) your also paying tax on that money as well.You can drive yourself nuts in different ways to calculate returns, me personally I do not determine my returns based on what I pay and deduct in the passive income taxes as you also have depreciation etc etc