S-Corp for Realtors: An IRS Hot Button

As a Realtor you may have formed an S corporation to save on self-employment taxes.

If so, is your S corporation salary

• nonexistent?
• too low?
• too high?
• just right?

Getting the S corporation salary right is important. First, if it’s too low and you get caught by the IRS, you will not just pay income taxes and self-employment taxes on the too-low amount, but you will also both payroll and income tax penalties that are often very costly. Click here to continue reading...