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Would officers of a s-corp that is only rental income be…

would officers of a s-corp...
would officers of a s-corp that is only rental income be required to take a salary?
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Answered in 12 minutes by:
3/26/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,312
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Hey! I'm Carter, I'm a CPA.

If they're doing anything for the company, i.e. helping to manage the rentals, then they should be taking some kind of salary. It doesn't need to be a lot of the person's capital is really driving the income instead of work from the owner.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,312
Experience: Adjunct Professor
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Customer reply replied 4 months ago
they have a couple employees on the books that are helping manage things for the most part... I don't think they do much with the day to day activities if that matters... only when major improvements etc need to be done... ?

I think you could justify no salary in that case if they're not doing any work. I would probably pay them something small in years of major improvements where they're doing a lot of work.

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