Article Date:
July 2006

Word Count:



Will the S Corporation That Owns Rental Property Terminate with Too Much Passive Income?

Recently, I was at a meeting of landlords where a guest lawyer mentioned that the S corporation was a bad entity for real estate because you could have your S corporation terminated with too much passive income. I had not heard this before. Can you shed some light on this for me? (C.S.O., Redwood City, CA)


Yes! First, this is not a problem for most S corporations. Ask yourself this question: Did I start my S corporation ... Log in to view full article.

Log in to view full article
Already a subscriber?
Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee