S-Corp And Real Estate Coordination For Active Businesses
Expert tax planning and advisory services from AE Tax Advisors.
AE Tax Advisors provides comprehensive s-corp and real estate coordination for active businesses services for high-income professionals and business owners. Our approach combines deep technical knowledge of the Internal Revenue Code with practical, real-world application.
How We Help
Every engagement begins with a thorough analysis of your current situation. We identify opportunities, design strategies, and work with you year-round to implement and monitor your plan.
Who This Is For
This service is designed for individuals and businesses earning $500,000 or more annually who want to take a proactive approach to tax planning.
Frequently Asked Questions
How much does an S-Corp election save?
It saves 15.3% self-employment tax on profit characterized as distribution rather than wages, up to the Social Security wage base, and 2.9% to 3.8% above it. The election typically starts paying for itself once net profit exceeds roughly $60,000 to $80,000 per owner after compliance costs.
Is there a 60/40 rule for S-Corp salary?
No. There is no safe harbor percentage in the Code, regulations, or IRS guidance. Reasonable compensation is a facts-and-circumstances determination measured against what comparable businesses pay for comparable services, using the nine factors summarized in IRS Fact Sheet FS-2008-25.
What happens if my S-Corp salary is too low?
The IRS recharacterizes distributions as wages, producing back employment taxes for both halves, failure to deposit and failure to file penalties, accuracy-related penalties, and interest across all open years. Adjustments spanning three years frequently exceed six figures.
Does an S-Corp election reduce income tax?
No. Profit is taxed at the same ordinary rates whether it flows through an LLC or an S-Corp. The election reduces employment tax only, which is a common point of confusion.