How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

I have an S-corp and a separate LLC that has rental property

This answer was rated:

I have an S-corp and a separate LLC that has rental property in it. The LLC has 95k in passive losses that have accumulated over the last 3 years. If the S-corp contracts the LLC to manage the properties in the S-corp would that be passive income for the LLC to recoup the passive losses.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

I hate to be the bearer of bad news, but the management of the properties would not be passive income

Megan C :

Rent is passive; management fees are not passive.

Megan C :

Therefore, this would not help you earn passive income to offset the passive losses

Megan C :

Did you have any further questions? Can you see my responses?

Megan C :

If you have no further questions, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and 2 other Finance Specialists are ready to help you