Are you a realtor receving commissions in your PA?
The PA stands for Professional Association, so the DDPR or the state allows you to operate as a corporation either under a PA or an LLC. Most agents like to be a PA, this way they can be taxed as a corporation, and they like to be treated as an S Corp to limit their self-employment taxes. There are great benefits to it.
Be sure to watch our latest video, or call (954) 888-6941 for more information.
I always tell my clients when they reach that threshold of $30,000 or more that it is best to incorporate and have an S Corporation to limit the self-employment tax. When you are wholesaling contracts or properties, you’re engaged in an active trade or business. So you are subject to the highest level of income tax, both ordinary income tax and self-employment. So the S Corporation is going to be the best way to go.
Watch our latest video for more information, and to find out if you are paying the right amount of tax on real estate, call (954) 888-6941 today!
Are you planning today to prevent problems tomorrow?
With tax planning, there are many strategies you can use, including income shifting, retirement planning, cost segregation, or depreciation. We use multiple strategies with our clients, but the key thing is to plan before the year ends. It is always best to meet with your advisor in June or November. Contact us today at (954) 888-6941 to schedule a consultation.
Learn all of this and more at the Tax Planning Strategies Webinar For Real Estate Investors, Brokers, Realtors, Landlords, Wholesalers, Rehabbers, Airbnb’ers