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I have 5 rental properties in Illinois which I manage. I created a series LLC. 5 series with each property and the Master LLC will be my management LLC. moving to Morocco

I understand that rental income is passive and doesn't qualify for FEIE. But do I qualify for foreign earned income exclusion if I pay myself a salary to manage the properties? For example, let's say my net income is $100,000 from all 6 properties, can't I pay myself $100,000 to manage them? Would I qualify for FEIE, it will be a huge tax creak for me. 
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1 Reply
rjs
Level 15
Level 15

I have 5 rental properties in Illinois which I manage. I created a series LLC. 5 series with each property and the Master LLC will be my management LLC. moving to Morocco

You cannot pay yourself a salary. You need to consult a local tax professional to figure out what, if anything, you can do to reduce your U.S. tax.

 

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