@Mike9241 wrote:
This is why I have a question about salary. he says he's a real estate professional thus
A rental activity of a taxpayer that qualifies as a real estate professional under Sec. 469(c)(7) is not presumed to be passive and will be treated as nonpassive if the taxpayer materially participates in the activity.
That may be a valid point but, with respect to an S corporation (1120-S), it seems to me that any salary would have to be reported on Form 8825 (there is, in fact, a line for that). Otherwise, a salary for providing services to the corporation would not make much sense since it would be directly derived from real estate rental income and nothing else (the K-1 would reflect that on Line 2 and there would be a loss from the salary on Line 1).
