I manage, and partially-own, two family S corps with 53% overlapping ownership. The larger S corp is clearly in the real estate rental business with 30 tenants. The other just has cash but plans to buy a rental property.
Would the single-tenant S corp qualify as a business for purposes of the qualified business income deduction of section 199A? What if it buys a NNN property, then would my involvement in the real estate business combined with the overlapping ownership put the single-tenant S corp in the real estate rental business too? This is like driving in a blinding snowstorm. Tax law sucks!
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"Tax law sucks!"
That's why folks that spend their time learning it tend to want to be paid for their services rather than giving their time away for free.
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"What if it buys a NNN property"
Has no one ever told you and your shareholders about the pitfalls of buying and holding real estate by an S Corp?
It seems you now have another reason to seek out good local guidance, to see if all of that can be fixed.
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