Deductions & credits

Very helpful information and articles!

 

A couple additional questions:

1) The reason I was thinking about the S corp for my wife's real estate business is I'm reading that it reduces the self-employment tax paid when it's based on her salary in the corporation.  For example if her profit is $100k, as a sole proprietor she would pay $15,300 (15.3%) SE tax, but in an S corp say she takes a salary of $50k with the other $50k in distributions, she only pays $7650 SE tax.  Is this correct?

2) If so, can we just keep the rentals as our personal passive income investment, outside of the S-corp?