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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I took early retirement in terms of my social security and I

Customer Question

I took early retirement in terms of my social security and I was aware there was a 1300 a month earning cap. What I was not aware of is that they're also hourly caps if you're self-employed. So I'm trying to think of a way I can make this work because I'm starting in real estate. So my thinking is could I form a business entity I have some or all of my real estate commissions paid into the business and today and then take them out after I'm 65 after deferring them?
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi, my name is Mark. I will be happy to help you with your question. You could form an S-Corporation. The S-Corporation earnings would not be considered self employment income. However, with an S-Corporation you would be required to pay yourself a reasonable salary. Also, with an S-Corporation you would have additional administrative costs associated with filing a tax return for the S-Corporation (1120S) and payroll tax reports (941, 940, W-2, W-3, A1-QRT, UC-018.

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